Rubber stretches gains on global cues

Physical rubber prices reached another all-time high on Thursday. Sustained uptrend in the international markets and supply concerns lifted the market to unseen levels but it lacked quantity sellers even at record prices. According to reports, Indian tyre makers bought natural rubber at Rs 212 a kg on Wednesday after a surge in international markets. They are expected to remain active even at current levels.

“The prices will scale further highs mainly due to enhanced consumption in China and India,” said Prof. K.K. Abraham, President, Pala Marketing Society. “Even in Thailand one of the major rubber producing countries, there is 30 per cent fall in production. Similarly in India, production fall is said to be quite inevitable. Weather changes also affect the production considerably,” he said.

According to traders, sheet rubber improved to Rs 214 (212) a kg in the main marketing centres. The grade gained further to Rs 213 (210.50) a kg both at Kottayam and Kochi, as reported by the Rubber Board.

Futures weak

The January series for RSS 4 weakened to Rs 213.70 (214.42), February to Rs 220.66 (221.67) and March to Rs 225.76 (226.61) a kg while the April series finished marginally higher at Rs 233.50 (233.01) a kg on the National Multi Commodity Exchange. RSS 3 (spot) increased sharply to Rs 237.53 (230.94) a kg at Bangkok. The grade flared up further at its January futures to ¥432.5 (Rs 235.60) from ¥419 a kg during the day session but then slipped to ¥429.9 (Rs 234.15) in the night session on the Tokyo Commodity Exchange.

Spot rates were (Rs/kg): RSS-4: 214 (212); RSS-5: 203 (202); ungraded: 200 (198); ISNR 20: 210 (208) and latex 60 per cent: 144 (143).

(Source: http://www.blonnet.com/2011/01/07/stories/2011010751421800.htm)