Panic sales pound rubber

Physical rubber prices fell sharply on Friday. The market lost ground on panic selling from dealers following the sharp declines in domestic futures. Reports from the trend-setting international markets were also extremely disappointing. There were no buyers even at lower levels and according to observers, it was difficult to sort out the prevailing rates in certain counters.

Sheet rubber declined to Rs 220 (225) a kg according to dealers. The grade closed weak at Rs 224 (228) a kg both at Kottayam and Kochi, according to the Rubber Board.

The March series nosedived to Rs 211.01 (219.80), April to Rs 220.33 (229.51), May to Rs 225.85 (235.26) and June to Rs 231.62 (241.27) while the July series closed marginally higher at Rs 242.98 (241.92) a kg on the National Multi Commodity Exchange.

RSS 3 (spot) moved down to Rs 284.27 (288.02) a kg at Bangkok. The March futures for the grade declined to ¥511 (Rs 282.65) from ¥515 during the day session and then to ¥495 (Rs 273.78) in the night session on the Tokyo Commodity Exchange.

Spot rates were (Rs/kg): RSS-4: 220 (225); RSS-5: 216.50 (222); ungraded: 213.50 (218); ISNR 20: 220 (227) and latex 60 per cent: 140 (143).