Current Location: Home > NEWS > Financial Market > Page

India Rubber:Ends higher on ICEX tracking Kerala mkts; down on TOCOM

The most-active September contract of rubber on the Indian Commodity Exchange ended higher today tracking gains in key markets of Kerala, traders said.

* Prices of natural rubber rose in Kerala due to firm demand from domestic stockists amid a persistent supply crunch. There is a supply crunch in the market as tapping is yet to gather pace in key growing areas of the state and will be in a full swing only after Onam, said Thaha Mohamed, the owner of Kottayam-based Sara Traders.

* However, tepid demand from tyre makers and reports that supply of rubber from overseas would reach India by the end of August limited sharp gains. Demand from tyre makers has been subdued as they are buying only for urgent needs, traders said.

* On the global front, benchmark rubber contracts on the Tokyo Commodity Exchange ended in the red tailing weakness in crude oil contracts on the New York Mercantile Exchange, analysts said. Rubber prices take cues from crude oil as it is used to manufacture synthetic rubber.

* Favourable weather in the key growing areas of Thailand boosted prospects of higher output, which further weighed on rubber contracts on TOCOM.

* However, the outlook remains firm on hopes of a revival in global demand. The Association of Natural Rubber Producing Countries said global consumption is expected to increase 2.6% on year in Aug-Oct.

* Following are highlights of today's trade:

 –September contract on ICEX ended up 2.5% at 13,500 rupees per 100 kg.  

 –On TOCOM, the February contract ended at 183.5 yen (about 127.84 rupees) per kg, down 0.8 yen.

 –In spot markets of Kerala, the widely-traded RSS-4 variety was quoted at 134 rupees per kg, up 2 rupees from the previous close, Rubber Board data showed.  End

US$1 = 73.81 rupees