Agri Business

Spot rubber declines on global cues

Aravindan Kottayam | Updated on January 26, 2011

The domestic rubber prices declined on Tuesday. In spot, the prices fell following the sharp losses on the NMCE. According to observers, the market remained under pressure as certain traders preferred to sell at higher levels fearing further slips in prices.

Global natural rubber (NR) supply in January 2011 is estimated to rise 2.9 per cent as farmers have enhanced tapping after prices rallied to record highs. “Encouraged by abnormally high NR prices, farmers harvested over-aged, low yielding trees,” the Association of Natural Rubber Producing Countries (ANRPC) said in its monthly statement.

According to traders, sheet rubber weakened to Rs 232.50 (235) a kg mainly on buyer resistance. The grade closed flat at Rs 235 a kg both at Kottayam and Kochi as quoted by the Rubber Board.

In futures, the February series declined to Rs 230.80 (235.64), March to Rs 236.67 (241.46), April to Rs 245.85 (249.51) and May to Rs 250 (254.94) a kg for RSS 4 on the National Multi Commodity Exchange (NMCE).

RSS 3 (spot) improved to Rs 269.31 (266.61) a kg at Bangkok. The January futures for the grade expired at ¥480 (Rs 266.48) a kg while the April futures improved to ¥482.3 (Rs 267.75) from ¥481.4 a kg during the day session but then declined to ¥474 (Rs 263.15) a kg in the night session on the Tokyo Commodity Exchange (TOCOM).

Spot rates were (Rs/kg): RSS-4: 232.50 (235); RSS-5: 222.50 (226); ungraded: 218 (220); ISNR 20: 225 (227) and latex 60 per cent: 153 (155).

Published on January 26, 2011

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