Commodities

Mixed trend in spot rubber

Our Correspondent Kottayam | Updated on January 21, 2020 Published on January 21, 2020

Spot rubber witnessed mixed trend on Tuesday. RSS 4 closed unchanged at Rs.138.00 a kg, according to traders and the Rubber Board.. It was quoted steady at Rs.134.00 a kg by Dealers. Another weak closing globally and the absence of tyre makers kept the commodity under pressure . Meanwhile, ISNR 20 and Latex continued to post moderate gains on enquiries from the general rubber goods sector.

In futures, the February contracts dropped to Rs. 140.84 (141.12), March to Rs.143.85 (144.16) and April to Rs.147.65 (147.75) per kg on the Indian Commodity Exchange (ICEX). The near month February futures was down by 0.20% with a volume of 371 lots and total trade value of 521.04 Lakh.

RSS 3 (spot) declined to Rs. 115.74 (116.28) per kg at Bangkok. Its January futures weakened to Rs. 108.88 (109.16), February to Rs. 108.75 (110.52) and March to Rs. 118.85 (122.52) per kg on the Tokyo Commodity Exchange (TOCOM).

The Economic Intelligence Center (EIC) forecasts a gloomy outlook for rubber prices in Thailand this year due to tepid demand from China and increased domestic supplies in Thailand. Rubber farmers are set to endure another year of low rubber prices on global uncertainty and a strong Thai baht.

According to reports, the kingdom heavily relies on Chinese consumption with 40% of exports destined for the world's second largest economy, mainly to make automobile tyres. Chinese demand for rubber from Thailand continues to plateau on the back of worries about the trade war with the United States and cheaper imports from neighbouring Cambodia, Laos, Myanmar and Vietnam.

Spot rubber rates (Rs/kg) were:

RSS-4: 138.00 (138.00)

RSS-5: 133.50 (134.00)

ISNR 20: 121.00 (120.00)

and Latex (60% drc): 87.00 (86.50)

Published on January 21, 2020
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