Date:22/02/2007 URL: http://www.thehindubusinessline.com/2007/02/22/stories/2007022201881200.htm

Back Trade volume low in spot rubber market

Aravindan

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Kottayam Feb. 21 Declines in international futures continued to put pressure on domestic rubber prices. According to reports, heavy long liquidation to limit the losses following a decline in oil and gold futures kept the global trendsetter bearish.

On the physical front, the market remained almost neutral throughout the session with extremely narrow volumes. Sheet rubber RSS 4 maintained its steady trend at Rs 96.50 a kg both at Kottayam and Kochi.

Futures decline

The domestic futures markets fell further in tune with TOCOM. On National Multi-Commodity Exchange, the March contract weakened to Rs 97.80 (Rs 98.14), April to Rs 103.75 (Rs 103.88), May to Rs 107.92 (Rs 108.20) and June to Rs 110.82 (Rs 111.47) a kg for RSS 4. The March futures for RSS 3 moved down to 260.3 Yen (Rs 95.41) a kg from 267.6 Yen at TOCOM. But the grade improved by 162 paise to Rs 106.27 a kg at Bangkok spot.

Spot rubber prices were (Rs/kg): RSS-4: 96.50 (96.50); RSS-5: 94 (94); Ungraded: 92 (92); ISNR 20: 92 (92) and Latex 60 per cent: 64.70 (65.25).