Sheet rubber up on fresh buying, short-covering

Physical rubber prices firmed up on Monday. According to observers, some tyre companies also bought in the market as it gained strength from global cues and a recovery in domestic futures. The prices may touch new highs in the days ahead, they said.

Sheet rubber improved to Rs 238 (Rs 236) a kg on fresh buying and short-covering. The grade increased to Rs 237.5 (Rs 236.5) a kg both at Kottayam and Kochi, according to the Rubber Board.

The shortage of skilled labour has seriously affected the medium-rubber holdings in the country, said Mr N. Radhakrishnan, Advisor to the Cochin Rubber Merchants Association. While small growers can take recourse to in-house tapping skills, large estates can depend on captive labour. It is the medium holdings that often face acute labour shortage. The growth in the number of rubber trees planted and number of trees to be tapped might not reflect an increase in production unless the problem of labour shortage is resolved, he continued.

In futures, the February series moved up to Rs 237 a kg (Rs 235.21), March to Rs 243.98 a kg (Rs 239.85), April to Rs 253.3 a kg (Rs 248.92) and May to Rs 257.5 (Rs 252.69) a kg for RSS-4 on the National Multi-Commodity Exchange.

RSS-3 flared up at its February futures to ¥527 (Rs 287.69) from ¥519 a kg during the day session, but then slipped to ¥526.6 (Rs 287.51) in the night session on Tokyo Commodity Exchange. The grade (spot) closed firm at Rs 288.73 (Rs 286.94) a kg at Bangkok.

The spot rubber rates were (Rs/kg): RSS-4 — 238 (236); RSS-5 — 228 (226.5); ungraded — 224 (221); ISNR-20 — 235 (232); and latex 60 per cent — 149 (149).