Date:30/05/2006 URL: http://www.thehindubusinessline.com/2006/05/30/stories/2006053003000800.htm

Back Spot rubber firm despite lack of buyers

Aravindan

Kottayam , May 29

Physical rubber prices were almost steady on Monday. The market was listless as speculators and covering groups turned cautious at higher levels in the absence of real consumer-based follow-up buying.

RSS 4 was quoted slightly lower at Rs 117.00 a kg against Rs 118.00 at Kottayam. The grade was static at Rs 118.00 a kg at Kochi. Apart from occasional profit booking from dealers and offers from growers, there was no selling pressure in spot to cool down the prices.

Futures weak

The rubber futures weakened on NMCE. Observers attributed the fall as a much-awaited technical correction. The session opened better but surrendered later even against firm overseas indices.

The June contract was quoted at Rs 119.30 (Rs 121.10), July at Rs 122.51 (Rs 124.21), August at Rs 121.00 (Rs 122.78) and September contract at Rs 118.00 (Rs 119.84) per kg for RSS 4. Spot prices (Rs a kg) were: RSS-4: Rs 117 (Rs 118); RSS-5: Rs 110 (Rs 110); ungraded: Rs 105 (Rs 105); ISNR 20: Rs 104 (Rs 104) and latex 60 per cent (per litre): Rs 74 (Rs 74).