Panic selling saps spot rubber

Aravindan Kottayam | Updated on March 11, 2011


Rubber prices crashed on Friday. On the spot, the market moved down sharply in tune with domestic futures that retreated on panic selling. There were no buyers even at lower levels and it was difficult to get an actual closing price in certain counters. According to observers, the market is expected to seek further lows in short term.

In fact the commodity remained under pressure globally reacting to the news and reports of the tsunami and earthquake in Japan. Meanwhile, the National Multi Commodity Exchange rubber futures hit the lower circuit shedding the daily trading limit of 4 per cent in all contracts.

Sheet rubber nosedived to Rs 207.50 (219) a kg, according to dealers. The grade slid to Rs 212 (218) a kg both at Kottayam and Kochi, according to the Rubber Board.

The March series fell sharply to Rs 206.93 (215.55), April to Rs 214.09 (223.01), May to Rs 218.50 (227.60), June to Rs 223.12 (232.41) and July to Rs 225.12 (234.50) a kg for RSS 4 on the NMCE.

The volumes totalled 12636 lots and open interest 9989 lots. The turnover was Rs 274.90 crores.

RSS 3 (spot) moved down to Rs 241.26 (244.92) a kg at Bangkok. The March futures for the grade declined to ¥430 (Rs 236.64) from ¥446.9 a kg during the day session and then to ¥427.4 (Rs 235.20) in the night session on the Tokyo Commodity Exchange (TOCOM).

Spot rates were (Rs/kg): RSS-4: 207.50 (219); RSS-5: 205 (216); ungraded: 203 (213); ISNR 20: 209 (218) and latex 60 per cent: 123 (130).

Published on March 11, 2011

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