Date:11/11/2006 URL: http://www.thehindubusinessline.com/2006/11/11/stories/2006111100911100.htm

Back Rubber declines sharply

Our Correspondent

Kottayam , Nov. 10

A favourable turn in weather, which is expected to enhance the latex production in a short span hammered spot rubber on Friday. The market is moving under the influence of domestic fundamentals than the global trends, an analyst told Business Line. This could be considered as a pre-production season phenomenon, he added.

The market witnessed heavy losses in all grades as all major consuming industries refrained from trading. Sheet rubber fell sharply to Rs 86.00 from at Rs 88.00 a kg both at Kottayam and Kochi.

Futures bearish

The rubber futures were visibly bearish though TOCOM finished the session in green. On NMCE, the November delivery contract ended at Rs 87.50 (Rs 88.99), December at Rs 80.35 (Rs 82.08), January at Rs 79.27 (Rs 80.64) and February at Rs 80.40 (Rs 81.86) per kg for RSS 4.

Spot prices (Rs a kg) were: RSS-4: 86 (88); RSS-5: 83.50 (86); ungraded: 79.50 (81); ISNR 20: 83.50 (85.50) and latex 60 per cent: 58.95 (60).