Date:08/12/2007 URL: http://www.thehindubusinessline.com/2007/12/08/stories/2007120851011200.htm

Back Buyer resistance keeps spot rubber static

Aravindan

Kottayam, Dec. 7 The international rubber prices turned better led by TOCOM on Friday The trend setter finished firm at ¥258.4 ( Rs.91.59) against ¥254.2 a kg at its January futures for RSS 3. According to sources, the Japanese markets rebound catalysed by weak crude oil and strong yen. In fact, RSS 3 slipped further to Rs 95.14 ( Rs 95.36) a kg at Bangkok.

Sheet rubber RSS 4 finished unchanged at Rs 92 a kg at Kottayam and Kochi on buyer resistance. RSS 5 and ISNR 20 moved down since the North Indian sector remained totally inactive on the grades. The under current appeared weak as certain dealers and growers joined the sellers queue fearing further fall in prices. The trend was mixed.

Futures mixed

The rubber futures concluded almost steady in near months, while the far months were marginally weak on NMCE. The December contract down the shutters at Rs. 93.50 ( 93.48), January at Rs 94.68 ( 94.61), February at Rs 95.90 ( 96.14) and March at Rs 97.75 ( 98.06) per kg for RSS 4. The volumes stood at 1,729 ( 1,965) lots. The December futures improved to Rs 94.43 from Rs 93.30 a kg on MCX..

The open interest was 6,774 ( 6,568) tonnes on NMCE with 1,450 ( 1,508) tonnes in December, 2,811 (2,739) tonnes in January, 1,898 (1,766) tonnes in February and 615 ( 555) tonnes in March.

Spot prices (Rs/kg) were: RSS-4 : 92 ( 92); RSS-5 : 88 ( Rs 89); ungraded : 85 (Rs 84.50); ISNR 20 : 87 ( 88); and latex 60% : 61 ( 61).