Commodities

Spot rubber tops ₹190/kg

Our Correspondent Kottayam | Updated on November 24, 2021

A man dries rubber sheets in Guwahati (file photo)   -  The Hindu

Short supplies and robust demand drive the prices

Spot rubber closed above the long term resistance of ₹190 a kg on Wednesday. The commodity managed to reach further highs driven by acute short supplies and bullish global cues coupled with strong domestic demand. “We are actually in a sellers’ market where there is not even a single seller to accept your quantity buying order,” an analyst said.

RSS-4 improved to ₹192 (190) per kg as reported by the traders. The grade closed unchanged at ₹188 and ₹183 respectively, according the Rubber Board and dealers. The trend was partially mixed.

In futures, the November contracts were up 3.29 per cent from Tuesday’s settlement price to close at ₹200.50 per kg with a volume of seven lots on the Multi Commodity Exchange (MCX).

As per the latest estimate reported by the ANRPC through the “Natural Rubber Trends, October 2021”, the world production of NR during 2021 is expected to be short of the consumption by 192,000 tonnes. But in view of the damages caused by the extreme weather, the world production in 2021 would be lower than the estimate reported at the end of October.

More specifically, the mismatch between the global production and global consumption of natural rubber in 2021 would be much wider than 192,000 tonnes. To conclude, the world production of NR is likely to undergo a downward revision once the impact of the recent depression rains and floods are ascertained by the respective countries.

RSS-3 (spot) increased to ₹151.05 (148.70) per kg at Bangkok. SMR20 dropped to ₹133.74 (135.23), while Latex firmed up to ₹103.53 (101.56) per kg at Kuala Lumpur.

The natural rubber contract for the January 2022 delivery was up 0.29 per cent from previous day’s settlement price to close at 154.70 Yuan (₹180.17) per kg with a volume of 218.000 lots in daytime trading on Shanghai Futures Exchange (ShFE).

Spot rubber rates (₹/kg) were: RSS-4:192 (190), RSS-5: 188 (187), ISNR20: 171 (171) and Latex (60% drc): 135 (135).

Published on November 24, 2021

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