Commodities

Fresh buying and short covering put rubber back on track

Our Correspondent Kottayam | Updated on November 18, 2021

Volumes remained dull on acute shortage of the raw material

Spot rubber ended in green after hitting an intra-day high of ₹184 a kg on Thursday. RSS-4 improved to ₹183.50 (182.50) and ₹183 (182) a kg respectively, according to traders and the Rubber Board. The grade was quoted at ₹178 (177) per kg by dealers.

The market made all-round gains on fresh buying and short covering and it was almost impossible to find out a quantity seller, even at higher levels. The overall volumes continued to remain dull.

“We are suffering from an acute shortage of the raw material”, a dealer said. “Certain buyers are willing to give an attractive premium to RSS grades if you have the quantity required for immediate delivery”.

The most active November contracts were up 0.03 per cent from Wednesday’s settlement price to close at ₹183.45 per kg with a volume of 26 lots on the Multi Commodity Exchange (MCX).

RSS-3 (spot) declined to ₹143.22 (144.09) per kg at Bangkok. SMR 20 weakened to ₹129.52 (131.15) and Latex to ₹98.37 (99.04) per kg at Kuala Lumpur.

The natural rubber contract for the January 2022 delivery was down 1.53 per cent from previous days settlement price to close at 14.39 Yuan (₹167.49) per kg with a volume of 197,839 lots in daytime trading on Shanghai Futures Exchange (ShFE).

Spot rubber rates (₹/kg) were: RSS-4:183.50 (182.50), RSS-5: 181 (180), ISNR20: 169 (168.50) and Latex (60% drc): 132.50 (132).

Published on November 18, 2021

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