Physical rubber prices continued to regain strength on Tuesday. The market improved on fresh buying and short covering in tune with the domestic futures on NMCE. According to sources, sellers stayed back expecting better rates but latex slipped on low demand. Sheet rubber improved to Rs 223.50 (220.00) a kg according to traders. The grade firmed up to Rs 224.00 (221.00) a kg as reported by the Rubber Board.

An already unfavourable age-structure of India's rubber area is worsening further as farmers prompted by abnormally high NR prices largely postpone uprooting of aged trees according to the Association of Natural Rubber Producing Countries (ANRPC).

Of the estimated 4,91,000 hectares of area available for tapping this year, trees in the peak-yielding age group from 10 to 19 years come to only 31% as compared to 63 per cent in 2001. About 46 per cent of the trees being tapped this year are in the age group 20-28 years. The yield for this age group comes to only 70 per cent as compared to the trees in the peak-yielding age group. Moreover, 13 per cent of the trees being tapped now are over-aged (29-31 years) and their yield is extremely low.

In futures, the March series improved further to Rs 225.60 (223.59), April to Rs 235.40 (232.65), May to Rs 239.30 (237.17), June to Rs 241.50 (239.43) and July to Rs 241.50 (239.42) per kg for RSS 4 on National Multi Commodity Exchange (NMCE).

RSS 3 (spot) surrendered to Rs 274.89 (280.39) a kg at Bangkok. The March futures for the grade recovered partially to ¥ 506.0 (Rs 277.23) from ¥ 499.5 during the day session but then remained inactive in the night session on Tokyo Commodity Exchange (TOCOM).

The spot rubber rates per kg are as follows - RSS-4: Rs 223.50 (220.00), RSS-5: Rs 221.00 (218.00), Ungraded: Rs 218.00 (215.00), ISNR 20: Rs 223.00 (219.00) and Latex 60%: Rs 140.00 (142.00)

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