Saturday, May 24, 2008

Spot Rubber Rates Flared Up Sharply

Kottayam: Spot rubber rates flared up sharply creating another life time record on Friday.

Heavy gains in global markets especially TOCOM which regained strength followed by short covering and bulls’ buying after a weak opening kept the domestic buyers under pressure during the day.

RSS 4 closed at Rs 127.50 against Rs 124.50 a kg after hitting an intraday high at Rs 128 a kg on late trading. Supply shortage has been yet another concern in the main marketing centres.

Certain major manufacturers were buyers on sheet rubber up to Rs 127 a kg but they failed to collect the raw material at those levels.

“Nobody appeared to be willing to sell their stocks may be on even higher expectations,” an observer said. “Speculative elements are still powerful and they are taking undue advantages of the increase in crude oil prices everyday”, said N. Radhakrishnan, President, Cochin Rubber MerchantsAssociation.

RSS 3 improved its May contract to ¥325.9 (Rs 134.53) from ¥317.2, June to ¥326.3 (318.5), July to ¥327.2 (318.4), August to ¥327.8 (318.5), September to ¥328.4 (319.2) and October to ¥330 (319.6) a kg at TOCOM. The grade (spot) closed higher at Rs 132.79 (131.22) a kg at Bangkok.

Spot prices were (Rs/kg): RSS-4: 127.50 (124.50); RSS-5: 124 (122); ungraded: 118.75 (117.50); ISNR 20: 120.50 (119.50) and latex 60 per cent: 82.50 (82.50).

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