Date:23/09/2006 URL: http://www.thehindubusinessline.com/2006/09/23/stories/2006092304320800.htm

Back Spot rubber continues to decline

Aravindan

Kottayam , Sept. 22

Spot rubber prices surrendered further on Friday. Sheet rubber broke the Rs 80 level and closed down by 50 paise at Rs 79.50 a kg at Kottayam.

The sentiments were mostly governed by sharp declines in TOCOM and Bangkok. Still the domestic market declined amidst dull volumes as there were no quantity sellers in the main marketing centres due to supply concerns.

Futures weak

The rubber futures followed suit on NMCE. The market failed to sustain as selling from nervous traders kept the prices under pressure, sources said.

The near month October contract was quoted at Rs 77.00 (Rs 78.13), November at Rs 75.90 (Rs 76.97), December at Rs 76.40 (Rs 77.46) and January at Rs 78.02 (Rs 79.61) per kg for RSS 4. The transactions stood at 565 tonnes till midday.

RSS 3 nosedived to Rs 80.34 from Rs 84.18 a kg at Bangkok spot. The October futures for the grade moved down further to 197.7 Yen (Rs 77.18) from 202.6 Yen a kg at TOCOM.

Spot rubber rates per kg were: RSS-4: Rs 79.50 (Rs 80.00); RSS-5: Rs 78.00 (Rs 79.00); Ungraded: Rs 76.00 (Rs 76.00); ISNR 20: Rs 77.00 (Rs 78.00) and Latex 60 per cent: Rs 61.55 (Rs 62.10).