Spot rubber resumed to upward journey on Tuesday. The market opened steady but regained strength breaking the 180 level once again on fresh buying and short covering.
“Heavy overnight rains continue to disrupt tapping and we expect a sharp drop in production in October compared to September” said George Valy, President, Indian Rubber Dealers Federation.
The forecast for the rest of the week looks grim and the bad weather is likely to stay with us during November.
RSS4 improved to ₹182.00 (180.00) a kg according to traders The grade was quoted firm at ₹181.00 (180.00) and ₹176.00 (175.00) per kg respectively by the Rubber Board and Dealers. The volumes were meagre.
The most active November delivery was up 0.41 per cent from Monday’s settlement price to close at ₹183.75 per kg with a volume of 48 lots on the Multi Commodity Exchange (MCX).
RSS3 (spot) increased to ₹143.34 (142.77) per kg at Bangkok. SMR20 weakened to ₹131.61 (131.77) and Latex to ₹99.66 (100.13) per kg at Kualalumpur.
The natural rubber contract for the January 2022 delivery was up 1.36 percent from previous days settlement price to close at 14.69 Yuan (₹171.15) per kg with a volume of 217,245 lots in daytime trading on Shanghai Futures Exchange (ShFE).
Spot rubber rates (₹/kg) were: RSS4:182.00 (180.00), RSS5: 179.00 (178.00), ISNR20: 168.00 (167.00) and Latex (60% drc): 132.00 (131.00).