Mixed trend in spot rubber

Aravindan | Updated on January 02, 2020 Published on January 02, 2020

Spot rubber was in a mixed mood on Thursday. RSS 4 continued to remain unchanged at Rs 131.00 a kg according to traders and the Rubber Board. It was quoted steady at Rs 127.00 per kg by dealers. Meanwhile RSS 5 and Ungraded rubber lost ground on buyer resistance probably due to the lack of enquiries from the non tyre sector. The transactions were in a low key.

In futures, the January contracts inched up to Rs 133.02 (132.97) and February to Rs 134.50 (134.47) per kg on the Indian Commodity Exchange (ICEX).

RSS 3 (spot) improved to Rs 112.99 (112.96) a kg at Bangkok. The Tokyo Commodity Exchange (TOCOM) remained closed on account of a 'TOCOM Designated Holiday'. The trendsetter will resume trading only on Monday January 6.

According to reports, Thailand's rubber exports to China decreased by 15 % during the last nine month period as a result of the trade war between US and China. Apart from the trade tension, Thailand, Indonesia and Malaysia have been suffering from 'Pestalotiopsis', a fungal disease that harms rubber plantations. A decline in their production by 800,000 tonnes in 2019 was anticipated as a result of so may factors, such as Pestalotiopsis, unfavourable weather conditions and prolonged low prices.

Spot rubber rates (Rs/kg) were:

RSS-4: 131.00 (131.00 )

RSS-5: 126.00 (126.50 )

ISNR 20: 113.00 (113.50) and Latex (60% drc): 84.50 (84.50)

Published on January 02, 2020
  1. Comments will be moderated by The Hindu Business Line editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.