Commodities

Spot rubber skids on panic selling

Our Correspondent Kottayam | Updated on September 09, 2021

Market trend will be determined by the timing of China’s imminent large-scale imports

Spot rubber continued to remain under pressure on Thursday. The market made all-round declines following another panic selling from certain dealers and growers. “The tapping season has already begun and we expect a sharp improvement in production and arrivals in the days ahead”, they said.

RSS-4 surrendered to ₹174.50 (176) per kg as reported by the traders. The grade weakened to ₹176 (177) and ₹171 (172) respectively, according to the Rubber Board and dealers.

As per reports, the short-term trend in natural rubber prices will be determined by the timing of China’s imminent large-scale imports of NR. This could happen either in September or October 2021. On the flip side, China’s continuing regulatory clamp-down and a possible decision by the Federal Reserve on the policy shift can keep the futures markets less active.

In futures, the most active September delivery lost 1.89 per cent from Wednesday’s settlement price to close at ₹171.62 per kg with a volume of 38 lots on the Multi Commodity Exchange (MCX).

The natural rubber contract for the September delivery was down 1.48 per cent from previous day’s settlement price to close at 12.47 Yuan (₹142.04) a kg, with a volume of 1,389 lots in day time trading on Shanghai Futures Exchange (ShFE).

RSS-3 (spot) declined to ₹129.89 (132.14) per kg at Bangkok. SMR20 dropped to ₹116.44 (116.63) and Latex to ₹88.54 (88.87) per kg at Kuala Lumpur.

The October delivery was up 0.21 per cent from last day’s settlement price to close at ¥188.8 (₹126.32) per kg with a volume of 12 lots on the Osaka Exchange, Japan.

Spot rubber rates (₹/kg): RSS-4:174.50 (176); RSS-5: 173 (175); ISNR20: 165 (167) and Latex (60% drc): 127 (128).

Published on September 09, 2021

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