Spot rubber slips on global cues, weather

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Kottayam, Sept. 16

Domestic rubber prices dropped further on Tuesday. The market lost its grip as selling from traders and growers became dominant followed by a positive change in weather and sharp declines in global rubber futures.

RSS 4 moved down to Rs 137.50 a kg from Rs 140 a kg, while the market made all-round declines with better volumes.

According to market circles, the tapping is also expected to resume in about 10 days time in all plantations. Though there is much discussion about the current price situation, it is true that rubber production does not increase. As it appears at present, production is comparatively low possibly due to the variations in existing weather conditions, Mr Joy Nadukkara, Former MP and President of Meenachil Rubber Marketing and Processing Cooperative Society, told Business Line. He also said the possibility of a major drop in price was remote.

RSS 3 declined sharply at its September contract to ¥314.5 (Rs 141.97) from ¥328.7, October to ¥305.3 (321.3), November to ¥299.3 (315.1), December to ¥291.7 (307.7), January to ¥287.4 (303.4) and February to ¥286.4 (302.4) a kg at TOCOM. The grade (spot) closed slightly higher at Rs 135.57 (135.43) a kg at Bangkok.

Spot rubber rates/kg were: RSS-4: 137.50 (140); RSS-5: 135.50 (137.50); Ungraded: 132 (135.50); ISNR 20: 128 (130) and Latex 60 per cent: 79 (81).

Taken from Business Line

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