Commodities

Rubber prices trade mixed

Aravindan Kottayam | Updated on January 17, 2020 Published on January 17, 2020

Spot rubber continued to trade mixed on Friday. RSS 4 closed unchanged at Rs.137.50 per kg according to traders and the Rubber Board. It was quoted steady at Rs.133.50 per kg by Dealers. RSS 5 and ISNR 20 improved further on enquiries from the general rubber goods sector. According to sources, there were no fresh enquiries from the tyre sector and RSS 4 lost its direction amidst low volumes.

In futures, the February contracts declined to Rs. 141.77 (142.62), March to Rs.144.69 (145.48) and April to Rs.148.15 (148.84) per kg on the Indian Commodity Exchange (ICEX). The near month February futures was down by 0.60% with a volume of 375 lots and total trade value of 532.42 Lakh.

“Technically, recent price action along with momentum indicators indicate a potential top formation in place and we may see prices correct sharply in short term. The intraday bias is also negative and we expect further declines in prices if it breaks below the support at 141500 for price objectives at 14000.00-13900.00 ", said Mr. Akshay Agarwal, MD, Acumen Capital

As per reports, Malaysia's natural rubber (NR) production increased 9.3 percent month-on-month to 53,019 tonnes in November 2019, raising NR stockpile by 14.5 percent to 216,414 tonnes amid lower exports and domestic consumption. Its NR exports fell 6.2 percent to 47,888 tonnes against October's figure of 50,600 tonnes. The country's main export destination in November 2019 was China, which accounted for 46.7 percent of total exports.

RSS 3 (spot) dropped to Rs.117.51 (117.76) per kg at Bangkok. The January futures weakened to Rs.112.84 (112.88), February to Rs.114.27 (115.46) and March to Rs.125.38 (125.58) per kg on the Tokyo Commodity Exchange (TOCOM).

Spot rubber rates (Rs/kg) were:

RSS-4: 137.50 (137.50)

RSS-5: 133.50 (133.00)

ISNR 20: 119.00 (118.00)

and Latex (60% drc): 86.00 (85.50)

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Published on January 17, 2020
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