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India Rubber: ICEX rubber futures fall post seven-month high Mon
Rubber contracts on the Indian Commodity Exchange fell today as investors added short positions after prices hit an over seven-month high of 13,807 rupees per 100 kg on Monday.
The June rubber contract on ICEX ended 1.1% lower at 13,602 rupees per 100 kg. A 56-tn rise in open interest to 546 tn indicated fresh selling.
Weakness in benchmark contracts on the Tokyo Commodity Exchange also weighed on rubber contracts on the ICEX. Today, the most-active October natural rubber contract on the Japanese bourse ended 0.6% lower at 185.9 yen (119.44 rupees) per kg.
Rubber contracts on TOCOM declined tracking Asian equities, which fell due to the ongoing US-China trade conflict, analysts said. On Monday, Beijing announced that it would raise tariffs on $60 bln worth of US goods from Jun 1.
In Thailand, price of the RSS-3 variety fell $1.09 cents to $175.20 per 100 kg. However, in Malaysia, the SMR-20 grade variety was marginally up by 2 cents at $149.65 per 100 kg, according to Rubber Board data.
However, a rise in prices of natural rubber in key spot markets of Kerala cushioned a sharp fall on the ICEX, said Joy Alencherry, owner of Kottayam-based Maria Rubber Links.
Prices of natural rubber in the key markets of Kerala hit an eight-month high due to improved demand from domestic stockists amid an ongoing supply crunch, traders said.
"Tapping activity of rubber has been halted in the key growing areas of Kerala due to a rise in mercury, thereby, adding to the supply crunch," said Kerala-based rubber trader Biju Thomas.
Today, in Kochi and Kottayam, the widely-traded RSS-4 variety was sold in a range of 132-135 rupees per kg, up 1-2 rupees from Monday, traders said. India's Rubber Board data showed the RSS-4 variety was traded at 134.00 rupees per kg, up 1 rupee, in Kottayam and Kochi.