Date:08/12/2004 URL: http://www.thehindubusinessline.com/2004/12/08/stories/2004120800991000.htm

Back Rubber slips in line with global trend

Our Correspondent

Kottayam , Dec. 7

SHARP loss in the international markets put pressure on the domestic spot rubber prices on Tuesday.

Fresh selling from growers and traders was observed in the main marketing centres. Major buyers retreated to the sidelines expecting the rates to come down further. All the grades except latex and ungraded rubber, which were quite inactive, lost while RSS 4 declined to Rs 50.00 against Rs 50.25 on Monday. Market players expect sheet rubber might break the Rs 50.00 level shortly.

The rubber futures was also weak following unfavourable reports from the global scenario. The December delivery was quoted at Rs 51.06 (51.36), January delivery at Rs 52.25(52.36), February delivery at Rs 53.28 (53.30) and March delivery at Rs 54.28 (54.36) per kg for RSS 4.According to sources, market recovered partially towards mid-session after recording loss initially with moderate volumes.

The January futures for RSS 3 fell to 121.6 yen from 125.6 yen on Monday at TOCOM. The same grade declined to Rs 52.06 from Rs 53.28 on Friday at Bangkok.

The spot rubber rates per kg were as follows: RSS 4 Rs 50.00 (Rs 50.25), RSS 5 Rs 48.00 (Rs 48.50), ungraded Rs 46.25 (Rs 46.25), ISNR 20 Rs 48.50 (Rs 49.00) and latex 60 per cent Rs 38.50 (Rs 38.50).