Agri Business

Spot rubber improves on global cues

Aravindan Kottayam | Updated on March 17, 2011

rubber   -  Business Line

Spot rubber improved on Thursday. The market recovered partially on global cues while the domestic futures on the NMCE finished hitting the upper circuit during the session. The prices gained on fresh buying and short covering and there were no quantity sellers on any grade even at higher levels. The volumes were low.

Japan accounts for seven per cent of the global demand for natural rubber according to the Association of Natural Rubber Producing Countries (ANRPC). The closure of a handful of auto-tyre plants in the country's northeast region for a few days cannot impact on the commodity's global demand in a significant way. If at all there is any marginal impact, it will be for a short term only. Meanwhile Tokyo rubber futures rebounded sharply for the second consecutive day on supply concerns and hopes of a possible intervention by producing countries to prop up prices.

Sheet rubber flared up to Rs 216.00 (202.00) per kg, said traders. The grade bounced back to Rs 215.00 (201.00) a kg as quoted by the Rubber Board.

The April series firmed up to Rs 222.47 (213.92), May to Rs 227.90 (219.14), June to Rs 234.24 (225.24) and July to Rs 235.76 (226.74) per kg for RSS 4 on National Multi Commodity Exchange (NMCE).

The March futures increased further to ¥ 400.0 (Rs 230.17) from ¥ 381.7 per kg during the day session but then remained inactive in the night session on Tokyo Commodity Exchange (TOCOM).

RSS 3 (spot) moved up to Rs 208.51 (204.62) a kg at Bangkok.

The physical rubber rates in Rs per kg follow: RSS-4: 216.00 (202.00), RSS-5: 212.00 (199.00), Ungraded: 205.00 (194.00), ISNR 20: 210.00 (198.00), and Latex 60 per cent: 117.00 (115.00)

Published on March 17, 2011

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