Commodities

China demand, supply concerns boost rubber

Our Correspondent Kottayam | Updated on October 26, 2020 Published on October 26, 2020

Spot rubber crossed the immediate resistance of ₹150 on Monday. RSS-4 improved to ₹152.50 (150) per kg, according to traders. The grade was quoted firm at ₹152 (149) by the Rubber Board.

According to the Association of Natural Rubber Producing Countries (ANRPC), rubber prices in India has risen after four years on growing demand from China and supply problems in the major producing countries.

As per reports, rubber is passing through the peak production and a highly remunerative price may push more NR into the market. Attractive price can convince the farmers to adopt various short-term measures for obtaining the maximum output from their trees.

“ Rubber is in a bull phase now” said B Rajashkharan, a planter based at Kottayam. “ I expect sheet rubber to create an all time high breaking the previous high of 250 this time “ he continued. “Or it may at least hit the same level before falling back in to another corrective phase”

RSS-3 (spot) flared up to ₹178.12 (165.55) per kg at Bangkok. SMR 20 improved to ₹125.74 (120.83) and Latex 60% to ₹123.31 (120.65) per kg at Kualalumpur.

Natural rubber futures closed higher in day time trading on Shanghai Futures Exchange (ShFE). The near month November delivery was up by 145 Yuan (₹1,600.03) to close at 13,820 Yuan (₹152,499.26) a tonne.

Spot rubber rates (₹/kg): RSS-4:152.50 (150); RSS-5: 148 (144); ISNR-20: 124 (121) and Latex (60% drc): 102.50 (100).

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Published on October 26, 2020
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