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India Rubber: Settles higher on ICEX on bargain buying, TOCOM gains

Tuesday, Aug 27

 

By Rahul Dhuri

 

MUMBAI – Rubber contracts rose on the Indian Commodity Exchange today due to bargain buying after prices hit a three-month low on Monday. The most-active September contract ended at 13,725 rupees per 100 kg, up 1%.

 

Gains in benchmark rubber contracts on the Tokyo Commodity Exchange also supported the upward trend on ICEX, said Raju Varghese, owner of Kottayam-based Polachirayil Traders.

 

On TOCOM, rubber contracts rose tracking benchmark crude oil contracts on the New York Mercantile Exchange, analysts said. Firm cues from natural rubber contracts on the Shanghai Futures Exchange also supported prices, they said. Prices of natural rubber take cues from crude oil as the latter is used to make synthetic rubber. 
 

The January contract of natural rubber on TOCOM ended up 0.4% at 163.7 yen (around 110.7 rupees) per kg.

 

In Thailand, prices of the RSS-3 variety rose by 88 cents to $151.10 per 100 kg, according to Rubber Board data. In Malaysia, the price of the SMR-20 variety fell 10 cents to $129.70 per 100 kg.
 

Back home, prices of natural rubber in key markets of Kerala rose today due to bargain buying by market participants after prices hit a three-month low on Monday, traders said.

 

The overall sentiment in the rubber market remains bearish due to sluggish demand from tyre makers. However, concerns over delay in arrivals is likely to limit the fall, said Thaha Mohamed, the owner of Sara Traders, based in Kottayam.

 

"Arrivals are likely to be delayed by 15-20 days during the peak season (Oct-Dec), which is seen lifting demand from stockists," Mohamed added.

 

Today, in Kochi and Kottayam, the widely-traded RSS-4 variety was sold at 139-140 rupees per kg, up 1 rupee from the previous close, traders said. Data from the Rubber Board showed prices of the RSS-4 variety in Kottayam was largely unchanged at 140.00 rupees per kg. In Kochi, prices were 1 rupee lower at 139 rupees.


The following table shows today's closing prices of rubber, in rupees per kg, as detailed by the Rubber Board, and the change in prices, in rupees, compared with the previous close:

 

 KOTTAYAMKOCHI
GRADEPRICECHANGEPRICECHANGE
RSS-4140.00Unch139.00(-)1.00
RSS-5135.00

Unch

135.00Unch
ISNR-20115.00(-)2.00NA     NA
Latex101.951.05NA     NA

 

OUTLOOK

Natural rubber prices in key markets of Kerala are likely to fall further in the coming five-six sessions on expectation of a rise in imports amid dwindling demand from tyre makers, traders said. However, concern over delay in arrivals is likely to limit the fall. End

 

US$1 = 71.48 rupees

 

Edited by Subham mitra

 

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This copy was first published on the Cogencis WorkStation

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