Date:31/05/2006 URL: http://www.thehindubusinessline.com/2006/05/31/stories/2006053102130800.htm

Back Technical correction hits spot rubber

Aravindan

Kottayam , May 30

The rubber market was hit by the much-waited technical correction on Tuesday. A sharp fall in the Japanese futures and the absence of genuine and quantity buyers at higher levels combined to initiate the downtrend, while the selling from dealers put further pressure on the prices.

Sheet rubber declined to Rs 114 a kg from Rs 117 a kg at Kottayam. According to sources, the market is also expecting a panic selling on Wednesday as more growers and traders might join the sellers queue if the international markets would continue to be bearish.

Futures decline

The rubber futures declined further on profit booking and speculative selling on NMCE. The June contract was quoted at Rs 111.25 (Rs 117.52), July at Rs 114.20 (Rs 121.17), August at Rs 111.25 (Rs 118.38) and September at Rs 107.66 (Rs 114.42) per kg for RSS 4.

Spot prices (Rs a kg) were: RSS-4: Rs 114 (Rs 117);

RSS-5: Rs 110 (Rs 110); ungraded: Rs 103.00 (Rs 105); ISNR 20: Rs 104.00 (Rs 104) and latex 60 per cent (per litre): Rs 71 (Rs 74).