Home > Industry News > Back India Rubber: Ends higher on ICEX tracking spot prices in Kerala
Back India Rubber: Ends higher on ICEX tracking spot prices in Kerala
Rubber futures on the Indian Commodity Exchange closed higher today tracking gains in Kerala’s key spot markets, traders said. The most active June contract ended at 15,842 rupees, up 3.9% from Friday.
Natural rubber prices in Kerala were up today due to rising demand from domestic stockists and tyre-makers, traders said. Today, in Kochi and Kottayam, the widely traded RSS-4 variety was sold at 149-150 rupees per kg, up 2-3 rupees from the previous close. An ongoing supply crunch in the market also supported prices, traders said.
However, expectations of a rise in India's natural rubber production prevented prices from rising sharply, said C.J. Augustine, the owner of Idukki-based Chettiparambil Traders.
Natural rubber output in the country is seen rising 15.7% on year to 750,000 tn in 2019-20 (Apr-Mar), said K.N. Raghavan, chairman and executive director of India’s Rubber Board.
Data from the Rubber Board showed that the RSS-4 variety was sold at 150.00 rupees per kg in Kochi and Kottayam, up 2 rupees in both the markets.
A marginal fall in the benchmark rubber contracts on the Tokyo Commodity Exchange, however, prevented sharp gains on ICEX, analysts said.
Rubber contracts on TOCOM ended marginally lower today as investors booked profits after the most active November contract hit a three-month high on Friday. The contract ended at 204.8 yen (around 131.22 rupees) per kg, down 0.1% from previous close.
However, gains in crude oil contracts on New York Mercantile Exchange limited the downside. Rubber prices take cues from crude oil as the latter is used to produce synthetic rubber, a substitute for natural rubber.
In Thailand, the price of the RSS-3 variety rose by $2.88 to $200.50 per 100 kg. However, in Malaysia, the SMR-20 variety fell by $1.46 to $155.60 per 100 kg, according to Rubber Board data.
The following table shows today’s closing prices of rubber, in rupees per kg, as detailed by the Rubber Board, and the change in prices, in rupees, compared with the previous close:
Price of natural rubber in Kerala’s key spot markets is likely to extend gains in the coming weeks owing to improved demand from domestic stockists and tyre manufacturers, traders said.