Spot rubber likely to experience lows

Our Correspondent Kottayam | Updated on September 15, 2021

Consuming industries continue to sideline the market

Spot rubber ended in a stalemate on Wednesday. “The commodity managed to sustain at the prevailing levels mainly on short covering but it is likely to explore further lows once the covering purchases are over”, a trader told Business Line. “I will not be surprised if it fell below ₹170.00 level in a week or two,” he added.

RSS4 was quoted unchanged at ₹173.50 per kg by traders. The grade finished flat at ₹174.00 per kg according to the Rubber Board. Major consuming industries continued to sideline the market, possibly waiting for an improvement in arrivals. According to reports, natural rubber production in the country stood at 7.15 lakh tonnes during the last year, even in adverse conditions. The crop is expected to give a big boost in production during this peak production season..

In futures, the front month September delivery lost 0.04 percent from Tuesday’s settlement price to close at ₹172.11 per kg with a volume of 17 lots on the Multi Commodity Exchange (MCX).

The natural rubber contract for January 2022 delivery was up 0.73 percent from previous day’s settlement price to close at 13.78 Yuan (₹157.59) a kg, with a volume of 2,11,799 lots in day time trading on Shanghai Futures Exchange (ShFE).

RSS3 (spot) firmed up to ₹132.16 (132.01) per kg at Bangkok. SMR20 dropped to ₹122.10 (122.68) and Latex to ₹88.92 (90.09) per kg at Kuala Lumpur.

The September delivery was down 1.93 percent from last day’s settlement price to close at 188.4 Yen (₹126.09) per kg with a volume of 24 lots on the Osaka Exchange, Japan (OSE).

Spot rubber rates (Rs/kg) were: RSS4:173.50 (173.50), RSS5: 171.50 (171.50), ISNR20: 165.00 (165.00) and Latex (60 per cent drc): 126.00 (126.00).

Published on September 15, 2021

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