The Hindu Business Line : Rubber up further on scarce arrivals

The physical rubber prices explored new highs on Thursday. Covering groups and purchase agents continued to chase the meagre arrivals offering better quotes. Most of the traders were in a holiday mood owing to Maundy Thursday and the volumes were low.

Sheet rubber improved further to Rs 85.50 both at Kottayam and Kochi against Rs 85 a kg on Wednesday. All major grades gained mainly on short covering as the market will remain closed on Friday on account of Good Friday and Vishu.

Crosses resistance

The market is technically very strong as it crossed the resistance at Rs 85 a kg for sheet rubber. The fundamentals also support the trend with a further decline in production due to adverse climatic conditions.

The rubber futures were better on NMCE amidst a dull closing in overseas indices. The April delivery contract was traded at Rs 85.18 (Rs 84.41), May at Rs 87.35 (Rs 87.14), June at Rs 88.85 (Rs 88.67) and July at Rs 89.20 (Rs 88.78) per kg for RSS 4.

The May futures for RSS 3 declined further by 137 paise to 248.9 yen (Rs 95.06) from 252.5 yen a kg at TOCOM.

Spot rates (Rs a kg) were: RSS-4: Rs 85.50 (Rs 85), RSS-5: Rs 84.50 (Rs 84), ungraded: Rs 83.50 (Rs 83), ISNR 20: Rs 84.50 (Rs 84) and latex 60% (a litre): Rs 60 (Rs 60).