Spot rubber stretches to new high

Kottayam, Dec. 20

The rubber market explored record highs on Monday. On the spot, prices moved up sharply reacting to the gains in the international indices. There were no quantity sellers even during closing hours and the market made all-round gains on fresh buying and short covering.

According to traders, sheet rubber flared up to Rs 207 (Rs 203) a kg, breaking the previous record closing of Rs 206 a kg in late trades.

The grade improved to Rs 206 (Rs 203) a kg both at Kottayam and Kochi, according to the Rubber Board.

Incessant rains across Thailand, Indonesia and Malaysia, have disrupted tapping by the top three producers and lowered the output amidst increasing demand from rising car sales in China and India.

The short supply is expected to worsen as the low-production season starts early next year in Thailand.

Meanwhile, key Tokyo rubber futures scaled a record high during the morning trade in Tokyo supported by strong gains in Shanghai futures and supply concerns in major producing countries.

In domestic futures, the January series firmed up to Rs 212.45 (208.62), February to Rs 216.87 (212.37), March to Rs 221.00 (215.46) and April to Rs 225.50 (219.47) per kg for RSS 4 on the National Multi Commodity Exchange.

The volumes totalled 8,098 lots and open interest 7,195 lots. The turnover was Rs 174.03 crore. The December futures firmed up sharply to ¥398.1 (Rs 215.84) from ¥389 a kg for RSS 3 during the day session and then to ¥402 (Rs 217.96) in the night session on the Tokyo Commodity Exchange (TOCOM).

RSS 3 (spot) increased to Rs 217.45 (213.75) a kg at Bangkok.

The spot rubber rates per kg were: RSS-4: 207 (203 ); RSS-5: 201 (197 ); Ungraded: 197 (193); ISNR 20: 201 (197); and Latex 60%: 134 (131).

(Source: http://www.blonnet.com/2010/12/21/stories/2010122151171800.htm)