Date:19/07/2007 URL: http://www.thehindubusinessline.com/2007/07/19/stories/2007071951231200.htm

Back Speculative sales smother spot rubber

Aravindan

Kottayam, July 18 The rubber prices declined sharply on Wednesday. According to sources, the domestic futures went below the initial daily limit of 2 per cent on NMCE owing to panic bull liquidation and speculative selling. There were some import rumours, they added.

On the physical front, sheet rubber moved down to Rs 81 from Rs 83 a kg both at Kottayam and Kochi after hitting a high at Rs 83.50 on early trading. The volumes continued to be low due to supply concerns though there had been marginal selling pressure from certain players.

Futures weak

The futures market declined further quoting the August contract for RSS 4 at Rs 80.05 (82.93) a kg on MCX. The August contract for the grade fell to Rs 80.31 (83.34), September to Rs 79.18 (82.09), October to Rs 79.01 (82.16) and November contract to Rs 78.57 (82.43) per kg on NMCE. The volumes improved to 5,008 (3,065) lots.

RSS 3 was weakened at its August futures to 249.3 Yen (Rs 82.74) from 254.9 Yen a kg at TOCOM. The grade’s spot moved down by 56 paise to Rs 83.22 a kg at Bangkok.

Spot prices were (Rs/kg): RSS-4: 81 (83); RSS-5: 79.50 (81); ungraded: 78 (79); ISNR 20: 79.25 (80.50) and latex 60 per cent: 57.90 (58.40).