Rubber prices hit record high on overseas rally

Natural rubber prices in India extended the previous session’s gains on Thursday to hit a new record high, tailing the rally in overseas markets spurred by a supply crunch, dealers and analysts said.

Tokyo rubber futures rose for a second consecutive day to a new record on Thursday on a strong dollar and rising oil prices, dealers said.

At 2:14 pm, the benchmark February contract on India’s National Multi-Commodity Exchange (NMCE) was up 0.1 per cent at Rs 22,185 ($490.8) a quintal, after rising to Rs 22,425, the highest level for the second-month contract.
At Kottayam spot market in Kerala, the most traded RSS-4 rubber (ribbed smoked sheet) was trading at a record Rs 21,400 a quintal, breaching earlier high of Rs 21,200 struck on Wednesday.

“Indian market is merely tracking international cues. Rubber prices are very high in international market. There is room for domestic market to rise further,” Ibrahim Jalal, a member of the Indian Rubber Dealers Federation, said.

(Source: http://business-standard.com/common/storypage_c.php?leftnm=10&autono=420976)