Date:09/01/2007 URL: http://www.thehindubusinessline.com/2007/01/09/stories/2007010904451200.htm

Back Spot rubber turns weak

Aravindan

Kottayam , Jan. 8

Spot rubber ruled weak on Monday. The market lacked proper buying support and sheet rubber closed at Rs 94.50 and Rs 95.50 against Rs 95.25 and Rs 960 a kg respectively at Kottayam and Kochi.

The grade hit a low of Rs 94, while the prices declined sharply in the morning session amidst selling from dealers and growers but recovered partially towards the end. Certain tyre companies were buyers up to Rs 94 a kg on sheet rubber. The trend was mixed.

The absence of guidance as TOCOM was on a holiday and other fundamental factors kept the activities restricted in the physical front but the domestic futures gained smartly even against global weakness.

Futures improve

On NMCE, the market opened slightly weak but improved towards close on fresh buying and short covering. The January contract finished at Rs 98.31 (Rs 95.32), February at Rs 100.54 (Rs 97.02), March at Rs 103.22 (Rs 99.25) and April at Rs 105.65 (Rs 101.91) per kg for RSS 4. The January contract for the grade improved to Rs 100 a kg from Rs 97.22 (230 lots) on MCX.

RSS 3 declined to Rs 85.18 from Rs 86.92 a kg at Bangkok.

Spot prices were (Rs/kg): RSS-4: Rs 94.50 (Rs 95.25); RSS-5: Rs 89 (Rs 89); ungraded: Rs 86 (Rs 86.25); ISNR 20: Rs 87 (Rs 87) and latex 60 per cent: Rs 64.20 (Rs 64.20).