Commodities

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
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