Physical rubber prices declined further on Thursday. The weak sentiments prevailing in the international markets seemed to be weighing on the domestic prices as TOCOM rubber futures hit a 13-month low falling below the ¥300 mark.
A favourable change in weather has triggered tapping in almost all plantation areas though practically there was no improvement in arrivals. According to observers, it might take a couple of weeks for the new produce to reach the destination. Prices are expected to remain under pressure, fundamentally and technically, and any closure below the Rs 200 level might induce further pressure on the commodity.
Sheet rubber weakened to Rs 208 (209.50) a kg, as quoted by the traders. The grade moved down to Rs 208.50 (210.50) a kg both at Kottayam and Kochi, according to Rubber Board.
The October series closed at Rs 209.98 (209.83), November at Rs 207.05 (206.75), December at Rs 207.75 (207.32), January at Rs 208.95 (208.50) and February at Rs 209.25 (209.50) a kg for RSS 4 on the National Multi Commodity Exchange.
RSS 3 (spot) dropped to Rs 207.33 (210.80) a kg at Bangkok. The October futures for the grade declined further to ¥290 (Rs 184.95) from ¥298.3 a kg during the day session but then recovered to ¥300 (Rs 191.33) a kg in the night session on the Tokyo Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 208 (209.50); RSS-5: 206 (207); ungraded: 196 (198); ISNR 20: 204 (206) and latex 60 per cent: 131 (132.50).