Spot Rubber Gains On Covering Buys

Kottayam: Higher oil prices and rains in major rubber producing countries combined with the reports of the onset of north east monsoon over the State lifted the domestic rubber prices to the positive zone on Friday. RSS 4 improved to Rs 92 from Rs 91.50 a kg as covering groups turned aggressive at Kottayam and Kochi. ‘The sentiments were extremely positive and we expect a better opening in the weekend session’, traders said.

There were moderate rains in the eastern region and the supply is expected to continue tight in the days ahead due to the change in weather conditions.

Futures up

The rubber futures moved up sharply breaking the initial daily limit of 2 per cent in distant months though the current month October finished weak at Rs 92.50 (92.87) a kg on NMCE. The November contract flared up to Rs 94.80 (92.03), December to Rs 94.65 (91.94) and January to Rs 95.74 (92.84) per kg for RSS 4. The most active November contract finished higher at Rs 93.60 (91.21) a kg on MCX. Spot prices were (Rs/kg): RSS-4: 92 (91.50); RSS-5: 90 (89); ungraded: 88 (87); ISNR 20: 88.50 (87.50) and latex 60 per cent: 63.15 (63.15).