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The ICEX rubber futures ended in the red on Tuesday. The commodity lost ground tracking the subdued demand from major consuming industries and stronger rupee that makes imports cheaper. However, the weak undercurrent was also visible in its June futures, which slipped into backwardation after 4 sessions on renewed short selling.
According to sources, the spot market is likely to be opened next week. This can lead to dumping of stocks for liquid cash, which may dampen the short term price outlook further, a Dealer said.
May futures weakened to ₹113.50 (113.93) and June to ₹113.92 (114.22) per kg on the Indian Commodity Exchange (ICEX). May contracts were down by 0.38 per cent with a volume of 2 lots and total trade value of ₹2.27 Lakhs.
“Rubber futures are consolidating in ₹11,000-₹11,800 range and a meaningful strength can be witnessed only if prices sustain above ₹12,000 for couple of sessions,” said Anu Pai, Analyst, Geojit.
“ June rubber has a support at ₹11,200 while ₹11,480 act as a major resistance” said Akshay Agarwal. MD, Acumen Capital.
RSS 3 (spot) improved to ₹104.89 (104.23) a kg at Bangkok. .Its May futures dropped to ₹98.78 (99.72), June to ₹100.96 (101.69) and July to ₹103.41 (104.25) per kg on TOCOM. SMR20 declined to ₹81.48 (82.76) and Latex 60 per cent to ₹74.35 (75.36) a kg at Kualalumpur.
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