Commodities

Rubber holds steady

Aravindan Kottayam. | Updated on October 25, 2019

Spot rubber ended almost steady on Friday. RSS 4 closed unchanged at Rs.123.50 per kg according to the Rubber Board. The grade finished flat at Rs.119.50 per kg. The trend was mixed as RSS 5 and ISNR 20 improved marginally on fresh enquiries from the non-tyre sector. The rubber market witnessed acute short supply of the raw material, an observer said.

The November futures weakened to Rs.122.34 (123.37), December to Rs. 123.38 (124.58) and January to Rs.124.96 (125.00) per kg on the Indian Commodity Exchange (ICEX).

In the international scene, the key plantation areas in Thailand have been hit by a fungal disease called Pestalotiopsis. This fungal disease could reduce the country's rubber output by almost 50%, experts said. Pestalotiopsis disease has spread into Thailand after hitting the rubber plantations in Indonesia and Malaysia. The three countries account for around 70% of the world's natural rubber production. The disease currently affects around 3.82 lakh hectares of rubber plantations in Indonesia. This might have a visible impact in the domestic and global rubber prices during the day’s ahead.

RSS 3 declined at its October futures to Rs.96.87 (97.35), November to Rs.98.57 (99.93) and December to 101.90 (102.89) per kg on the Tokyo Commodity Exchange (TOCOM).

Spot rubber rates (Rs/kg) were:

RSS-4: 123.50 (123.50)

RSS-5: 121.50 (121.00)

ISNR 20: 111.50 (111.00)

and Latex (60% drc): 97.00 (97.00)

Published on October 25, 2019

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