Date:03/11/2005 URL: http://www.thehindubusinessline.com/2005/11/03/stories/2005110301611200.htm

Back Low arrivals prop up rubber

Our Correspondent

Kottayam , Nov. 2

THE spot rubber market recorded sharp gains on Wednesday.

Speculative buying from traders and covering groups extended further support to all grades including latex as the arrivals were extremely narrow.

Heavy overnight rains were reported to be disrupting the tapping process putting further pressure on domestic supply.

Both at Kottayam and Kochi, RSS 4 improved to Rs 68 against Rs 67 a kg on Tuesday.

The transactions were in a low key.

NMCE remained closed on Wednesday.

On MCX, the November contract was quoted at Rs 67.65 (Rs 68.10), December contract at Rs 65.10 (Rs 64.59) and January contract at Rs 65.19 (Rs 62.68) per kg for RSS 4.

The volumes totalled 366 lots till mid session

The November futures for RSS 3 improved to 188.7 yen from 188 yen a kg at TOCOM.

The grade declined to Rs 75.70 from Rs 76.31 a kg at Bangkok.

The Asian market was subdued due to holidays in some of the major producing and consuming countries.

Physical rubber rates were RSS-4: Rs 68 (Rs 67); RSS-5: Rs 65 (Rs 64.50); ungraded: Rs 62.50 (Rs 62); ISNR 20: Rs 64.75 (Rs 64.50) and latex 60%: Rs 45 (Rs 44.50).