Rubber skids on lockdown, weak global cues on April 29

The ICEX rubber futures finished lower on Wednesday. According to sources, the market fell over 2 per cent as rising fears of lockdown extension in some districts of Kerala coupled with weak global cues spurred the liquidation of long positions. “The downgrading of Idukki and Kottayam from green to red zones due to new covid-19 cases came as a big dampener for the natural rubber sector,” a dealer said, adding, “This will bring the market activities to a standstill in near term”.

“The front month May is likely to remain under pressure with prices trending towards ₹11,000or below until. the contract expiry. On flip side, a bout of short covering may take prices back towards ₹11,650,” said Kunal Shah, Research Head of Commodities, Nirmal Bang.

RSS 4 declined at its May futures to ₹113.07 (116.34) and June to ₹110.91 (112.81) per kg on the Indian Commodity Exchange (ICEX). The near month May contracts were down by 2.81per cent with a volume of 117 lots and total trade value of ₹134.14 lakh.

RSS 3 (spot) weakened to ₹104.23 (105.19) per kg at Bangkok. Its May futures dropped to ₹ 99.50 (99.67), June to ₹100.70 (100.88) and July to ₹103.34 (103.46) per kg on the Tokyo Commodity Exchange (TOCOM).