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India Rubber: Hits 3-wk low on spot cues, tailing weakness on TOCOM
The most-active July contract of rubber on Indian Commodity Exchange hit a three-week low of 14,821 rupees per 100 kg, tailing key spot markets in Kerala and a fall in the benchmark rubber contracts on Tokyo Commodity Exchange, traders said.
The contract settled at 14,862 rupees per 100 kg, down 0.9% from Friday.
Prices of natural rubber fell in Kerala's key spot markets today due to tepid demand from domestic stockists and major buyers, traders said.
However, expectation of a fall in imports and ongoing supply crunch cushioned the fall, said C.J. Augustine, the owner of Idukki-based Chettiparambil Traders.
Today, in Kochi and Kottayam, the widely traded RSS-4 variety was sold at 150-151 rupees per kg, down 1 rupee from the previous close.
Rubber Board data showed that in Kochi, the RSS-4 variety was quoted at 150.50 rupees per kg, down 1 rupee, from the previous close. In Kottayam, it was sold at 151.00 rupees per kg, down 0.50 rupee.
In the global arena, rubber futures were down over 1% on TOCOM, tracking contracts on the Shanghai Futures Exchange, where an increase in warehouse stock weighed on prices, analysts said.
China's decision to launch an anti-dumping probe into some rubber products also dampened sentiments. The country is the largest consumer of natural rubber.
The most-active November contract on the Japanese bourse ended 0.7% lower at 196.5 yen (127.10 rupees) per kg. The contracts had hit a three-week low of 195.6 yen in early trade today.
In Thailand, price of the RSS-3 variety rose $1.35 to $205.30 per 100 kg, according to Rubber Board data. However, in Malaysia, price of the SMR-20 variety fell $1.50 to $148.25 per 100 kg.