Demand perks up latex prices

Kottayam, Dec. 29

Spot rubber prices were almost steady on Wednesday. The market lost its direction on buyer resistance, as major players were hesitant to enlarge their commitments, possibly expecting an improvement in domestic supplies. Meanwhile, latex 60%, the only gainer of the day, closed firm on fresh demand. The volumes were dull.

According to traders, sheet rubber finished flat at Rs 206 a kg, amidst scattered transactions. The grade firmed up to Rs 207 (206.75) a kg, both at Kottayam and Kochi, according to the Rubber Board.

Among other reports, the key Tokyo rubber futures recovered partially on short-covering due to supply concerns prior to the long holidays, as the exchange will remain closed from December 31 to January 3. The most active Shanghai May futures closed weak at 36,030 yuan a tonne, down from Monday's close of 37,110 yuan.

Futures up

In futures, the January series improved marginally to Rs 209.56 (209.32), February to Rs 214.12 (213.96), March to Rs 218.35 (217.96) and April to Rs 224.40 (223.99) a kg for RSS 4 on the National Multi Commodity Exchange.

RSS 3 (spot) closed at Rs 224.13 (224.04) a kg at Bangkok. The January futures for the grade increased to ¥ 404.5 (Rs 222.17) from ¥ 401.9 during the day session and then to ¥ 406.5 (Rs 223.27) in the night session on the Tokyo Commodity Exchange.

Spot rubber rates (Rs/kg) kg were: RSS-4: 206 (206); RSS-5: 199 (199); Ungraded: 195 (195); ISNR 20: 204 (204); and latex 60%: 138.50 (137)

(Source: http://www.blonnet.com/2010/12/30/stories/2010123052051800.htm)