Date:11/11/2005 URL: http://www.thehindubusinessline.com/2005/11/11/stories/2005111101681200.htm

Back Rubber declines on poor demand

Our Correspondent

Kottayam , Nov. 10

SPOT rubber declined sharply on Thursday. The absence of buyers hammered the prices followed by an increase in selling from traders and growers.

According to dealers, enhanced arrivals are expected in the days ahead as the weather has also turned favourable for production and tapping. Sheet rubber moved down to Rs 66.50 from Rs 67.25 a kg on Wednesday. The grade was quoted at Rs 66 a kg at Kochi.

The NMCE rubber futures registered moderate losses guided by the weakening spot prices. The November contract was traded at Rs 65.50 (Rs 67.68), December at Rs 64.08 (Rs 64.86), January at Rs 64 (Rs 64.58) and February at Rs 64.25 (Rs 64.86) per kg for RSS 4.

The transactions till noon totalled 2,002 lots, recording 1,041 in November, 670 in December, 185 in January and 106 in February. The December contract for RSS 4 declined to Rs 64.50 from Rs 65.08 a kg on the MCX.

The November futures for RSS 3 closed steady at 184.2 yen at TOCOM. The grade remained static at Rs 72.71 a kg at Bangkok.

The spot prices (a kg) were: RSS-4: Rs 66.50 (Rs 67.25); RSS-5: Rs 63 (Rs 64); ungraded: Rs 60 (Rs 61); ISNR 20: Rs 63.75 (Rs 64.50); and latex 60 per cent: Rs 42 (Rs 43).