Date:05/08/2008 URL: http://www.thehindubusinessline.com/2008/08/05/stories/2008080550151100.htm

Back Spot rubber declines further

Aravindan

Kottayam, Aug. 4 The rubber prices weakened further on Monday. The market fell as certain dealers and growers joined the sellers’ queue fearing the trend to remain bearish in short term.

Sheet rubber RSS 4 declined to Rs 137.50 from Rs 138.50 a kg on the previous weekend. “We expect the domestic market to be under pressure as it is still more than Rs 5 above the global rates”, an observer said.

Meanwhile major manufacturers kept their quotes much below at Rs 137 to avoid an immediate recovery in prices. The volumes were slightly better though supply concerns continued to dominate the overall sentiments.

The August contract for RSS 3 finished marginally better at ¥334.5 (Rs 131.64) against ¥333.8 a kg while the grade slipped further at its September futures to ¥327 (¥329.5), October to ¥323.9 (¥327.5), November to ¥322.3 (¥326.2), December to ¥320.5 (¥324.8) and January to ¥322.2 (¥325.8) a kg at TOCOM. RSS 3 (spot) moved down to Rs 132.26 (Rs 133.67) a kg at Bangkok.

Spot prices were (Rs/kg): RSS-4: 137.50 (138.50); RSS-5: 135 (137); ungraded: 131.50 (133); ISNR 20: 134.50 (136) and latex 60 per cent: 87 (89).