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The rubber futures ended the session in red on Wednesday. RSS 4 declined at its April contracts to ₹114.95 (116.44) and May to ₹114.48 (116.83) per kg on the Indian Commodity Exchange (ICEX). The near month April contracts were down by 1.24% with a volume of 302 lots and the total trade value of 349.37 lakhs.
According to sources, the Tokyo Commodity Exchange (TOCOM) futures plunged to an 11-year low early this week as the coronavirus pandemic worsened and lockdowns tightened across the world, raising concerns over slower demand and prompting a flurry of fresh selling.
"We saw fresh selling as automakers are shutting down more plants across the world," an analyst said. "With no signs of the pandemic ending, the TOCOM could explore further lows in the days ahead,"
The rubber futures in TOCOM are influenced by the strength of the Japanese yen against the US Dollar, unlike the Shanghai and SICOM Futures Exchanges. So we should also consider it that the appreciation of yen partially contributed to the slump in rubber futures during the period from 21 February to 9 March in TOCOM.
RSS 3 improved at its April futures to ₹92.51 (91.31) while the May futures weakened to ₹93.31 (93.39) and June to ₹94.77 (95.41) per kg on TOCOM. RSS 3 (spot) dropped to ₹101.73 (101.74) per kg at Bangkok.
Spot rubber prices were not available from 24 March following the nation-wide lockdown to prevent the further spread of Covid-19.
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