Date:17/07/2007 URL: http://www.thehindubusinessline.com/2007/07/17/stories/2007071752081200.htm

Back Supply fears help spot rubber recover

Aravindan

Kottayam, July 16 Spot rubber resumed its upward journey on Monday. The market rallied mainly catalysed by domestic supply concerns. According to observers, people in the rubber growing regions in Kerala were suffering from the contagious fevers, which, in turn, dried up the availability of the raw material further.

Sheet rubber RSS 4 firmed up to Rs 82 from Rs 81 a kg both at Kottayam and Kochi. A tyre major was buyer on the grade up to Rs 81 a kg . The market made all-round gains as covering groups remained active around the quoted rates.

Futures gain

The rubber futures improved smartly on NMCE. The near month August contract moved up to Rs 84.67 (81.94), September to Rs 83.50 (81.84), October to Rs 83.53 (81.87) and November contract to Rs 82.99 (82.93) per kg for RSS 4. The volumes totalled 3,550 (1,466) tonnes.

The August contract for RSS 4 improved to Rs 83.75 (81.74) a kg on MCX.RSS 3 (spot) improved by 33 paise to Rs 84.11 a kg at Bangkok. TOCOM was closed on account of Marine Day.

Spot rubber prices were (Rs/kg): RSS-4: 82 (81); RSS-5: 80 (79.50); ungraded: 78 (77); ISNR 20: 79.50 (79) and latex 60 per cent: 58.40 (58.40).