Fresh buying boosts spot rubber prices

KOTTAYAM, FEB. 1:

Spot rubber turned better on Tuesday. The market improved marginally on fresh buying and short covering following a smart recovery on the National Multi Commodity Exchange. According to observers, sellers stayed away expecting further gains in the days ahead and volumes were on a low key.

Speculators were expecting the market to move up further. But since the prices lost ground much earlier to their expectations, most of them were unwilling to take delivery in the February futures and hence the series remained under pressure from their selling.

This has spread to other counters and it created an impact in the physical market also. This is the reason why the prices have been dropped during the past few sessions, said Mr. George Waly, President, Indian Rubber Dealers Federation.

The difference between the international and Indian prices is around Rs 41 a kg as on Monday. The farmers are quite reluctant to dispense with their stocks with the result the movement to the market has almost paralysed, he added.

Sheet rubber firmed up to Rs 222.50 (221.50) a kg, according to dealers. The grade increased to Rs 223.50 (223) a kg as quoted by the Rubber Board.

FUTURES GAIN

RSS 4 bounced back with the February series rising to Rs 225 (217.69), March to Rs 229.15 (222.35), April to Rs 238.60 (231.44) and May to Rs 245.85 (239.25) a kg on the NMCE.

RSS 3 (spot) closed at Rs 262.64 (262.46) a kg at Bangkok. The February futures for the grade slipped further to ¥478.4 (Rs 268.43) from ¥478.7 a kg during the day session but then improved to ¥483.3 (Rs 271.17) in the night session on the Tokyo Commodity Exchange.

Spot rates were (Rs/kg): RSS-4: 222.50 (221.50); RSS-5: 216 (215); ungraded: 210.50 (210); ISNR 20: 220 (219) and latex 60 per cent: 149 (149).

(Source: http://www.thehindubusinessline.com/markets/commodities/article1146476.ece)