Agri Business

Spot rubber prices on standstill

Aravindan Kottayam June 15 | Updated on June 15, 2021

Delayed onset of southwest monsoon is also expected to lower the output further

Spot rubber ended in a stalemate on Tuesday. Sentiments remained under pressure tracking the overall declines in the global trendsetters and MCX futures but the market managed to sustain at the prevailing levels on supply concerns. However, the delayed onset of southwest monsoon is also expected to lower the output of plantation crops like rubber in Kerala, sources said.

RSS4 was quoted steady at ₹170.00 per kg by traders and the rubber board. The grade closed unchanged at ₹165.00 per kg according to dealers. The trend was partially mixed as RSS5 improved a tad on enquiries from the non tyre sector. The transactions were low.

The domestic rubber futures closed weak amid thin trade on Tuesday. The commodity is likely to remain subdued in short term as major technical indicators are in a sell mode, analysts said. The front month June delivery was down 0.57 per cent from Monday’s settlement price to close at ₹170.86 per kg with a volume of 30 lots on the Multi Commodity Exchange (MCX).

RSS 3 (spot) declined to ₹157.69 (158.72) per kg at Bangkok. SMR 20 weakened to ₹117.65 (119.80) and Latex to ₹100.46 (101.76) per kg at Kualalumpur.

The most active November futures shed 0.76 per cent from previous day’s settlement price to close at 235.2 Yen (₹156.65) per kg with a volume of 44 lots on the Osaka Exchange, Japan.

The natural rubber contract for the September delivery was down 40 Yuan (₹458.31) from previous day’s settlement price to close at 12,735 Yuan (₹145,866.49) a tonne with a volume of 387,356 lots in day time trading on Shanghai Futures Exchange (ShFE). The commodity recovered sharply during late trading hours erasing the early losses almost fully on bargain hunting at lower levels.

Spot rubber rates (₹/kg) were: RSS4:170.00 (170.00); RSS5: 168.00 (167.50); ISNR20: 157.00 (157.00) and Latex (60 per cent drc): 123.00 (123.00).

Published on June 15, 2021

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