Spot rubber ended in red on Monday. According to observers, the market managed to sustain at the prevailing levels on covering purchases as certain companies continued to insist for immediate deliveries.
“We expect the commodity to seek further lows once the covering purchases are over by a day or two or even a week”, a dealer said. “There is also slow but steady rise in arrivals as tapping has resumed in full swing in almost all plantation areas”.
RSS-4 weakened to ₹178 (179) per kg, according to traders. The grade was quoted unchanged at ₹179 and ₹174, respectively, by the Rubber Board and dealers.
In futures, the most active December contracts were up 1.59 per cent from Friday’s settlement price to close at ₹180 per kg with a volume of 17 lots on the Multi Commodity Exchange (MCX).
NR market may continue to receive support from short supplies in the short term, said the Association of Natural Rubber Producing countries (ANRPC). The world supply of NR is expected to decline from December 2021 onwards on account of the seasonal factor.
The natural rubber contract for the front month January 2022 delivery was up 1.79 per cent from previous day’s settlement price to close at 14.52 Yuan (₹172.83) per kg with a volume of 13,340 lots in daytime trading on Shanghai Futures Exchange (ShFE).
RSS-3 (spot) improved to ₹145.44 (143.66) per kg at Bangkok. SMR20 firmed up to ₹131.33 (129.37), while Latex dropped to ₹100.08 (100.71) per kg at Kuala Lumpur.
Spot rubber rates (₹/kg) were: RSS-4:178 (179), RSS-5: 175 (177), ISNR20: 167 (168) and Latex (60% drc): 136 (137.50).