Commodities

Covering purchases lift spot rubber

Our Correspondent Kottayam | Updated on August 10, 2021

Mixed trend seen as latex closed unchanged on low demand

Spot rubber extended the gains further on Tuesday. The market regained strength mainly on covering purchases but the overall volumes continued to remain low amid low supplies. It was difficult to find a quantity seller even at higher levels.

RSS-4 closed firm at ₹177.50 (177) per kg after hitting an intra-day high of ₹178.50 per kg, according to traders. The grade improved to ₹176.50 (176) and ₹171.50 (171) per kg, respectively, according to Rubber Board and dealers.

The trend was partially mixed as latex closed unchanged on comparatively low demand.

In futures, the most active August delivery was up 1.58 per cent from Monday's settlement price to close at ₹180.90 per kg with a volume of 68 lots on the Multi Commodity Exchange (MCX).

RSS-3 (spot) firmed up to ₹138.59 (138.45) per kg at Bangkok. The restrictions being imposed by the governments of Malaysia and Thailand to contain the spread of the virus are keeping activities low in their rubber glove and other latex-based manufacturing industries. The resultant low demand for NR latex keeps sentiments down both in the Kuala Lumpur and Bangkok NR latex markets, said the Association of Natural Rubber Producing Countries.

The natural rubber contract for the September delivery was down 0.29 per cent from previous day's settlement price to close at 13,660 Yuan (₹156,827.32) a tonne with a volume of 126,727 lots in day time trading on Shanghai Futures Exchange (ShFE).

The forward January 2022 delivery lost 0.18 per cent from last day’s settlement price to close at ¥221.8 (₹149.40) per kg with a volume of 140 lots on the Osaka Exchange, Japan.

Spot rubber rates (₹/kg) were: RSS-4:177.50 (177); RSS-5: 174.50 (174); ISNR20: 162.50 (162) and Latex (60% drc): 130.50 (130.50).

Published on August 10, 2021

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