Agri Business

RSS grade rubber on a steady note

Kottayam | Updated on September 14, 2021

Shift to latex, covid restrictions and higher import duty have kept the prices firm

Spot rubber continued to remain neutral on Tuesday. RSS-4 ended on a steady note at ₹173.50 a kg, according to traders. The grade closed unchanged at ₹174 as per the Rubber Board. Covering buyers were visibly active in the local trading houses chasing sellers, but the transactions were in an extremely low key.

RSS prices have gained three per cent during the past couple of months in India in sharp contrast with global markets mainly due to the large-scale shift to latex by individual farmers and farmer groups, said reports.

The domestic prices were also supported by the supply constraints caused by rain-induced tapping disruptions and the disruption from the spiralling Covid-19 cases in Kerala, the key grower.

Finally, the high import duty and abnormal increases in ocean freight charges made imports less attractive prompting major consuming industries to buy from the local markets.

In futures, the most active September delivery was up 0.54 per cent from Monday's settlement price to close at ₹172.02 per kg with a volume of 34 lots on the Multi Commodity Exchange (MCX).

RSS-3 (spot) improved to ₹132.01 (131.69) per kg at Bangkok. SMR20 firmed up to ₹122.68 (120.45) and Latex to ₹90.09 (89.14) per kg at Kuala Lumpur.

The natural rubber contract for the September delivery was up 2.41 per cent from previous day's settlement price to close at 12.88 Yuan (₹147.29) a kg, with a volume of 203 lots in day time trading on Shanghai Futures Exchange (ShFE).

The September delivery was up 0.53 per cent from last days settlement price to close at ¥189.5 (₹126.83) per kg with a volume of 33 lots on the Osaka Exchange, Japan.

Spot rubber rates (₹/kg): RSS-4:173.50 (173.50), RSS-5: 171.50 (171.50), ISNR20: 165 (165) and Latex (60% drc): 126 (126).

Published on September 14, 2021

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