Spot rubber at all time high

Aravindan Kottayam | Updated on January 24, 2011

Breaking all the previous records, physical rubber rates hit another historical high on Monday. The market was led by the bullish international prices and strong local demand. According to dealers, arrivals were still low and the absence of quantity sellers kept buyers on their toes throughout the session. The market is expected to resume the upward journey in the days ahead, they added.

Indian tyre makers bought natural rubber at Rs 225 a kg but they failed to procure the desired quantity since the price moved above their quoted level in the spot market. “As the releases to the market are very negligible, the consuming industry is compelled to purchase rubber at higher rates. Farmers are holding stocks expecting domestic prices to come at par with the global market'' Mr. George Valy, President, IRDF told Business Line.

Sheet rubber flared up to Rs 226 (222) a kg according to traders. The grade improved to Rs 225 (223) a kg both at Kottayam and Kochi as quoted by the Rubber Board.

The February series for RSS 4 slipped to Rs 228.94 (229.91), March to Rs 233.90 (235.60) and April to Rs 243 (244.14) while the March series concluded its debut trading at Rs 249.01 a kg on the National Multi Commodity Exchange (NMCE).

The volumes totalled 12422 lots and open interest 10690 lots. The turnover was Rs 291.89 crores.

RSS 3 (spot) firmed up to Rs 251.91 (247.34) a kg at Bangkok. The January futures for the grade increased to ¥ 453.5 (Rs 249.90) from ¥447.9 a kg during the day session but then remained inactive in the night session on the Tokyo Commodity Exchange (TOCOM).

Spot rates were (Rs/kg): RSS-4: 226 (222); RSS-5: 217 (212); ungraded: 209 (206.50); ISNR 20: 219 (217) and latex 60 per cent 152 (151).

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Published on January 17, 2011
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