Agri Business

Lack of buyers saps spot rubber

Our Correspondent Kottayam | Updated on September 25, 2021

Higher arrivals and panic selling keep a lid on prices

Spot rubber downed the shutters in the red on Friday. Sharp declines in domestic futures and the absence of quantity buyers kept the sentiments under pressure during the weekend session.

“I expect RSS-4 to hit ₹165 a kg since there is a steady improvement in arrivals and more dealers and growers are likely to join the sellers’ queue fearing further fall in prices,” an observer told BusinessLine. A leading tyre-maker bought sheet rubber at lower levels but kept a very low profile.

RSS-4 dropped to ₹169 (170), according to traders and the Rubber Board. The grade surrendered to ₹164 (165) per kg, according to dealers.

In futures, the September delivery was down 3.18 per cent from Thursday’s settlement price to close at ₹163 per kg with a volume of 10 lots on the Multi Commodity Exchange (MCX).

RSS-3 (spot) weakened to ₹126.11 (126.34) per kg at Bangkok. SMR20 slid to ₹117.92 (118.67), while Latex improved to ₹88.31 (87.73) per kg at Kuala Lumpur.

The natural rubber contract for the October delivery was down 0.2 per cent from previous day’s settlement price to close at 12.49 Yuan (₹142.45) per kg with a volume of 1,689 lots in day time trading on Shanghai Futures Exchange (ShFE).

Spot rubber rates (₹/kg): RSS-4:169 (170), RSS-5: 166 (167), ISNR20: 161 (161) and Latex (60% drc): 122.50 (123.50).

Published on September 24, 2021

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