Date:23/02/2007 URL: http://www.thehindubusinessline.com/2007/02/23/stories/2007022303981200.htm

Back Spot rubber stagnates on buyer resistance

Aravindan

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Kottayam Feb. 22 Domestic spot rubber prices continued to stagnate on buyer resistance. A turnaround in Japanese futures followed by smart gains in oil and gold futures failed to make any impact in the physical market. Heavy losses due to the fire in a major rubber godown in Thailand which might even affect international supplies was yet another news from the global scene.

Sheet rubber was static at Rs 96.50 a kg consecutively for the fifth day at Kottayam. The grade was quoted slightly better at Rs 97 a kg at Kochi. Major manufacturers seemed to be comfortable with imports and they were absolutely inactive during the past few sessions, sources said.

Futures improve

The rubber futures improved on NMCE. The March contract firmed up to Rs 98.35 (97.89), April to Rs 104.15 (103.70), May to Rs 108.20 (107.88) and June to Rs 111.35 (110.86) a kg for RSS 4.

The March delivery contract for the grade finished at Rs 98.90 a kg against Rs 98.47 (198 lots) on MCX.

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 (64.70).