Agri Business

Panic sales drag spot rubber prices

Aravindan Kottayam | Updated on January 28, 2011

Spot rubber lost ground on Thursday. According to sources, the market fell on buyer resistance following the sharp declines in the domestic futures on the National Multi Commodity Exchange. An almost panic selling from dealers kept the prices under pressure during closing hours while the reports from the trend setting Japanese futures were also negative.

Till December, the crop obtained was low due to intermittent rains and other disturbances.

But from the beginning of January, the situation changed and the availability of the crop improved.

Now the harvest is almost steady but in spite of this inflow has not picked up mainly because the large growers are holding the stocks, said Mr Ibrahim Jalal, Treasurer, Indian Rubber dealers Federation.

For them, the scrap obtained from their plantations is enough to meet their day to day expenses and therefore the holding capacity has also strengthened, he said.

Sheet rubber declined to Rs 225.50 (232.50) a kg according to Dealers. The grade moved down to Rs 231 (235) a kg both at Kottayam and Kochi, according to the Rubber Board.

Futures slip

In futures, the February series nosedived to Rs 222 (230.92), March to Rs 227.24 (236.49), April to Rs 239.25 (245.69) and May to Rs 245.00 (250.97) a kg for RSS 4 on the NMCE.

RSS 3 (spot) closed at Rs 262.86 (261.95) a kg at Bangkok.

The February futures bounced back to ¥479.7 (Rs 263.69) from ¥467 a kg during the day session but then weakened to ¥472.5 (Rs 259.72) a kg in the night session on the Tokyo Commodity Exchange.

Spot rates were (Rs/kg): RSS-4: 225.50 (232.50); RSS-5: 220 (222.50); ungraded: 214 (218); ISNR 20: 224 (225) and latex 60 per cent: 152 (153).

Published on January 27, 2011

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