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Spot rubber prices increased to a new high on Wednesday. The market firmed up further on fresh buying and short covering following the sharp gains in the domestic and international futures. Meanwhile, in the global market the key Tokyo and Shanghai rubber futures hit all-time highs amidst supply concerns and strong demand.
According to reports, TOCOM could hit ¥500 shortly as the start of the wintering season in major producing countries could reduce output.
While the rise in rubber prices cheers the producing sector as a whole, small industries based on the raw material are struggling to survive. At the same time, growers are suffering due to the shortage of skilled tappers since youngsters are not interested to join the profession. The unexpected and intermittent changes in weather have been another challenge faced by them during the season.
Sheet rubber closed firm at Rs 227 (225) a kg, according to dealers. The grade increased to Rs 228 (225) a kg, as quoted by the Rubber Board.
FUTURES IMPROVE
The February series improved to Rs 234.70 (231.61), March to Rs 240.70 (236.76), April to Rs 249.79 (245.08) and May to Rs 255.75 (250.36) a kg for RSS 4 on the National Multi Commodity Exchange.
RSS 3 (spot) slipped to Rs 252.28 (252.78) a kg at Bangkok. The January futures for the grade flared up to ¥465 (Rs 256.77) from ¥452.8 a kg during the day session but then remained inactive in the night session on the Tokyo Commodity Exchange (TOCOM).
Spot rates were (Rs/kg): RSS-4: 227 (225); RSS-5: 220 (218); ungraded: 211 (208); ISNR 20: 223 (220) and latex 60 per cent: 153 (152.50).
(Source: http://www.blonnet.com/2011/01/20/stories/2011012052112200.htm)
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