Date:09/11/2005 URL: http://www.thehindubusinessline.com/2005/11/09/stories/2005110900391200.htm

Back Rubber falls sharply on weak global trends

Our Correspondent

Kottayam , Nov. 8

RUBBER prices declined sharply on Tuesday.

Major manufactures abstained from the market expecting an improvement in arrivals as tapping has improved in most of the plantation areas.

Bearish international markets depressed the sentiments further. Sheet rubber declined to Rs 67 from Rs 68 a kg at Kottayam and Kochi respectively. All grades, including latex, lost in the absence of fresh buying interest though there was no selling pressure from growers and dealers.

The NMCE rubber futures followed the trend quoting the November contract at Rs 67.07 (Rs 67.73), December at Rs 64.60 (Rs 65.04), January at Rs 64.40 (Rs 64.75), and February contract at Rs 64.60 (Rs 64.91) per kg for RSS 4.

The volumes totalled 1,573 lots with 765 in November, 547 in December, 153 in January and 108 lots in February till mid session.

The November contract for the grade was traded at Rs 66.50 against Rs 67.47 a kg on the MCX.

At TOCOM, the November futures for RSS 3 closed at 183.4 yen against 184.9 yen a kg while it declined to Rs 74.26 a kg from Rs 74.70 at Bangkok.

The physical rubber prices (per kg) were: RSS-4: Rs 67 (Rs 68); RSS-5: Rs 64 (Rs 65); ungraded: Rs 64 (Rs 62); ISNR 20: Rs 64.50 (Rs 65.25); and latex 60 per cent: Rs 43.50 (Rs 45.50).