Spot rubber ended in green on Monday. RSS4 improved to ₹121.00 (₹120.00) per kg according to traders and the Rubber Board. The grade firmed up ₹117.00 (116.00) per kg as reported by the dealers. The commodity is passing through the lean production season and the decline in arrivals is expected to trigger a buying spree in the local trading houses, an observer said. In fact, the market strengthened during the last couple of sessions mainly on covering purchases at lower levels.
The RSS4 market in India heavily depends on the domestic demand for NR which fell by 26.4 per cent during H 1 2020 and is expected to fall by 11.9 per cent during Q3 2020 as per the preliminary estimate and forecasts according to the Association of Natural Rubber Producing Countries (ANRPC). The poor domestic demand has hindered the RSS4 market in India in retaining the momentum since 11 June.
In futures, the July contracts declined to ₹121.81 (123.01) and August to ₹125.06 (125.92) per kg on the Indian Commodity Exchange (ICEX). The July contracts were down by 0.98 % with a volume of 41 lots and total trade value of ₹50.15 Lakhs.
RSS 3 weakened at its July futures to ₹ 98.50 (98.62) while its August futures improved to ₹ 100.72 (100.36) per kg on the Tokyo Commodity Exchange (TOCOM). SMR 20 declined to ₹ 88.28 (88.69) and Latex 60% to ₹ 84.91 (85.92) per kg at Kualalumpur.
Spot rubber rates (₹/kg) were: RSS4:121.00 (120.00); RSS5: 117.00 (116.00); ISNR20: 104.00 (103.00) and Latex (60% drc): 82.00 (82.00).