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Spot rubber ended on a weak note on Monday. The market lost further ground on an almost panic selling from traders as the arrivals continued to rise steeply against a sharp drop in demand RSS-4 surrendered to ₹162 (165) per kg, according to traders.
The grade declined to ₹163 (166) per kg as reported by the Rubber Board. All technical indicators were in a sell mode and the commodity is expected to touch or even fall below ₹160 a kg this week.
“The new restrictions imposed against the spread of the Omicron strain of Covid-19 and the resultant concerns over the demand outlook can have a negative bearing on NR market. The concerns over the potential spread of the new strain can compel traders to remain cautious. Certain companies from the tyre and non tyre sectors have cut production by 20-30 per cent. This also may be a reason for the drop in domestic demand”, analysts said.
In futures, the December contracts were down 2.64 per cent from Friday’s settlement price to close at ₹158 per kg with a volume of 9 lots on the Multi Commodity Exchange (MCX).
RSS-3 (spot) weakened to ₹140.46 (141.64) per kg at Bangkok. SMR20 dropped to ₹127.64 (128.85) and Latex to ₹93.13 (93.52) per kg at Kuala Lumpur.
The natural rubber contract for the January 2022 delivery was down 0.18 per cent from previous day’s settlement price to close at 14.21 Yuan (₹167.15) per kg with a volume of 8,017 lots in daytime trading on Shanghai Futures Exchange (ShFE).
The most active May 2022 delivery was up 0.57 per cent from its last settlement price to close at ¥227.6 (₹148.82) per kg with a volume of 27 lots on the Osaka Exchange (OSE), Japan.
Spot rubber rates (₹/kg) were: RSS-4:162 (165), RSS-5: 159 (162), ISNR20: 152 (154) and Latex (60% drc): 126.50 (128).
Training programme
The National Institute for Rubber Training (NIRT), under the Rubber Board organises a three-day training in rubber cultivation at NIRT, Kottayam, from January 3-5, 2022. The course content includes modern planting materials, planting techniques, fertiliser recommendations, pest and disease management and tapping.
According to a press release issued by the Board, the training will be conducted in strict adherence to Covid-19 protocol. For further details, contact phone 0481-2353127 or Whatsapp 7994650941. Email: training@rubberboard.org. in
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