Agri Business

Covering buys lift rubber further up

Aravindan Kottayam | Updated on March 18, 2011

The physical rubber prices firmed up further on Friday. The market continued to follow the domestic and international trend setters NMCE and TOCOM. The prices moved up mainly on covering purchases while the tyre sector kept a very low profile though they were in the market during the session. There has been no selling pressure even at higher levels as the market is expected to strengthen in tune with the global cues if favourable.

Bridgestone, the leading tyre manufacturer in Japan has started production in most of the factories affected by last week's earthquake. The company is adopting measures to deal with rolling power outages which are being coordinated by the power suppliers and the government. The company is also expected to begin deliveries on Friday.

In spot, sheet rubber improved to Rs 222 (216) a kg according to traders. The grade closed firm at Rs 221 (215) a kg as reported by the Rubber Board.

RSS 4 flared up at its April series to Rs 231.36 (222.47), May to Rs 237.01 (227.90), June to Rs 243.60 (234.24) and July to Rs 245.19 (235.76) a kg on the National Multi Commodity Exchange (NMCE).

The March futures increased further to ¥411 (Rs 227.99) from ¥400 a kg during the day session but then remained inactive in the night session on the Tokyo Commodity Exchange (TOCOM). RSS 3 (spot) bounced back to Rs 227.37 (208.51) a kg at Bangkok.

Spot rates were (Rs/kg): RSS-4: 222 (216); RSS-5: 217 (212); ungraded: 215 (205); ISNR 20: 217 (210) and latex 60 per cent: 119 (117).

Published on March 18, 2011

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