Date:02/07/2005 URL: http://www.thehindubusinessline.com/2005/07/02/stories/2005070201161200.htm

Back Spot rubber prices improve on sustained demand

Our Correspondent

Kottayam , July 1

rubberSUSTAINED demand from the covering groups and purchase agents initiated another uptrend in spot rubber prices.

The market improved smartly on fresh enquiries while the demand and supply gap widened once again indicating the short supply of sheet rubber in the main marketing centres.

Nominal buying from the non-tyre and north Indian sectors backed up the bull run while sheet rubber improved to Rs 61.00 a kg from Rs 60.25 at Kottayam but remained flat at Rs 61.00 a kg at Kochi on buyer resistance.

The under current was firm and the sentiments strengthened as RSS 3, which is the equivalent of domestic RSS 4, firmed up to Rs 66.15 at Bangkok from Rs 65.52 a kg on Wednesday giving fresh export possibilities.

The rubber futures were traded on a discount following profit booking at higher levels on Friday.

The July contract was quoted at Rs 61.15 (Rs 61.28), August contract at Rs 61.59 (Rs 61.75), September contract at Rs 58.75 (Rs 59.18) and October contract at Rs 57.75 (Rs 57.82) per kg for RSS 4.

According to Geojit, the volumes were better at 909 lots with 610 lots traded in July till noon.

The August futures for RSS 3 slipped marginally to 170 Yen from 171.6 Yen at TOCOM.

Most of the overseas futures were reported to be slipping marginally on profit booking, sources said

The spot prices per kg were as follows: RSS-4: Rs 61.00 (Rs 60.25), RSS-5: Rs 59.00 (Rs 57.75), ungraded: Rs 56.75(Rs 56.00), ISNR 20: Rs 57.00 (Rs 55.50) and latex 60 per cent: Rs 39.00(Rs 8.50)