Commodities

Spot rubber ends in red on Thursday

Aravindan Kottayam | Updated on September 02, 2021

FILE PHOTO: A view of the rubber plantation on the foothills of Sabarimala in Kerala

Falls below the long term support of ₹180 a kg on buyer resistance

Spot rubber ended in red on Thursday. The commodity shed a couple of days gains and fell below the long term support of ₹180 a kg on buyer resistance.

“Rubber may continue to remain under pressure since a positive change in weather is on the way and any improvement in arrivals will bring it further down to the next support line of ₹175 a kg,” analysts said.

“The market is experiencing an acute shortage of RSS grades also since most traders are selling their produce as latex now,” an observer told BusinessLine. “I expect that growers may slowly return to their traditional sheet rubber processing if it remains inside a price range of ₹150 and ₹180 per kg and it will be a comfortable level for both, the producing and consuming sectors”.

RSS4 weakened to ₹179.50 (180.50) per kg according to traders and the Rubber Board. The grade dropped to ₹174.50 (175.50) per kg as per dealers. The trend was partially mixed as ISNR20 resumed the upward journey on sustained demand from the tyre sector.

MCX

In futures, the most active September delivery lost 1.37 percent from Wednesday’s settlement price to close at ₹177.50 per kg with a volume of 34 lots on the Multi Commodity Exchange (MCX).

The natural rubber contract for the September delivery was down 0.59 percent from previous day’s settlement price to close at 12.78 Yuan (₹144.44) a kg with a volume of 1,738 lots in day time trading on Shanghai Futures Exchange (ShFE).

RSS3 (spot) surrendered to ₹136.89 (139.08) per kg at Bangkok. SMR20 declined to ₹118.78 (120.92) and Latex to ₹90.78 (92.97) per kg at Kuala Lumpur.

The September delivery was down 0.10 percent from last days settlement price to close at 192.8 Yen (₹127.72) per kg with a volume of 23 lots on the Osaka Exchange, Japan.

Spot rubber rates (Rs/kg) were: RSS4:179.50 (180.50); RSS5: 178.00 (178.50); ISNR20: 168.50 (168.00) and Latex (60 per cent drc): 128.50 (129.00).

Published on September 02, 2021

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