Spot rubber improved further on Friday. Prices strengthened following initial gains in domestic futures but the late declines on the National Multi Commodity Exchange (NMCE) put pressure on the market during closing hours. Volumes continued to be dull as the inflow of raw material was still narrow.
Sheet rubber closed at Rs 214 (211) a kg after hitting an intra-day high of Rs 215 a kg, according to traders. The grade improved to Rs 213 (211) a kg both at Kottayam and Kochi, as quoted by the Rubber Board.
Natural rubber market may continue to lack momentum as far as global economy keeps the current slow pace according to Mr Jom Jacob, Senior Economist, Association of Natural Rubber Producing Countries (ANRPC). The depression in NR prices since mid-October has been contributed by the following five key factors. Depreciation of Thai baht and Malaysian ringgit against the dollar, fall in crude oil price since mid-October, bearish sentiments due to slowdown and uncertainty in demand, a marginal improvement in outlook for supply during the current year and lack of support from speculative investments and hedge funds.
RSS 4 declined at its November series to Rs 213 (215.23), December to Rs 212.70 (215.08), January to Rs 213.50 (216.01), February to Rs 213.76 (216.97), March to Rs 216.65 (216.75) and April to Rs 220 (221.75) a kg on the NMCE.
RSS 3 (spot) closed firm at Rs 198.37 (195.88) a kg at Bangkok. The November futures flared up to ¥307.5 (Rs 198.01) from ¥296.6 a kg during the day session but then weakened to ¥301.9 (Rs 194.40) in the night session on the Tokyo Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 214 (212); RSS-5: 211 (210); ungraded: 204 (202); ISNR 20: 201 (200) and latex 60 per cent: 128.50 (128.50).
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