Spot rubber weakens on buyer resistance

Kottayam, Dec. 7

Spot rubber turned weak on Tuesday. The prices slipped on buyer resistance while most of the players stayed back letting the prices to settle at comfortable levels as rains subsided and almost came to a halt giving way to the beginning of the much awaited peak production season. But there was no improvement in arrivals yet or selling pressure from any corner, market circles reported.

The trend was mixed. Sheet rubber declined to Rs 197.50 from Rs 199.00 a kg in the main marketing centres. According to the Rubber Board, the grade finished weak at Rs 197.50 (198.50) a kg both at Kottayam and Kochi.

RSS 4 recovered partially at the December series to Rs 199.80 (198.00), January to Rs 202.70 (200.66), February to Rs 206.31 (204.63) and March to Rs 209.55 (207.84) per kg on National Multi Commodity Exchange (NMCE).

The volumes totalled 6,000 lots and open interest 6,445 lots. The turnover was Rs 121.05 crore.

The December futures firmed up to Rs 368.5 (199.37) from Rs 366.8 a kg for RSS 3 during the day session but then remained inactive in the night session on Tokyo Commodity Exchange (TOCOM).

RSS 3 (spot) closed at Rs. 202.70 (203.05) a kg at Bangkok. The spot rubber prices per kg were: RSS-4: Rs 197.50 (199.00), RSS-5: Rs 187.50 (188.00), Ungraded : Rs 182.00 (182.00), ISNR 20: Rs 190.50 (191.00), and Latex 60 per cent : Rs 128.00 (128.00).

(Source: http://www.thehindubusinessline.com/2010/12/08/stories/2010120853181800.htm)