Spot rubber continues to remain subdued

Aravindan | Updated on December 19, 2019

Spot rubber continued to remain subdued on Thursday. RSS 4 weakened to Rs.132.00 (132.50) and Rs.128.00 (128.50) per kg respectively according to the Rubber Board  and Dealers.

The grade (RSS 4) was quoted unchanged at Rs.132.00 per kg by traders. The market made all-round declines on buyer resistance following the moderate losses in global indices.  In futures, the January contracts dropped to Rs. 133.26 (133.91) and February to Rs. 134.72 (135.90) per kg on the Indian Commodity Exchange (ICEX). 

The domestic futures corrected more than 1% hitting an intraday low of 13,221 on profit-taking at higher levels.

We expect prices to get support at 13,100 as the recent US-China trade deal and upbeat economic data will support prices, said Mr. Manoj Jain, Director & Head of Commodities, IndiaNivesh.

"Rubber on ICEX dropped 0.46% to 13330 as the demand from tyre makers continued to remain subdued due to a slowdown in the domestic automobile sector" said Mr. Ajay Kedia, Director, Kedia Advisory.

"Technically it should get support at 13,260 and 13,180 levels. The next resistance is likely to be at 13,380 and a move above the same could take prices to 13,420 "   RSS 3 (spot) declined to Rs. 114.73 (115.85) per kg at Bangkok.

The December futures weakened to Rs. 112.62 (113.71), January futures to Rs. 112.62 (114.29) and February to Rs. 114.57 (117.08) per kg on the Tokyo Commodity Exchange (TOCOM).

Spot rubber rates (Rs/kg) were:

RSS-4:                          132.00 (132.00)

RSS-5:                          128.00 (128.50)

ISNR 20:                        116.00 (116.50) 

and Latex (60% drc):      88.50 (89.50)  

Published on December 19, 2019

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