Spot rubber remained neutral on Tuesday. RSS-4 finished on a steady note at ₹ 173.50 a kg, according to traders. The grade closed unchanged at ₹ 174 according to the rubber chart. Hedge buyers were conspicuously active in local business houses chasing sellers, but transactions were conducted in an extremely low tone.
RSS prices have risen three percent over the past two months in India, in stark contrast to world markets, mainly due to large-scale switch to latex by individual farmers and groups of farmers, the reports said.
Domestic prices were also supported by supply constraints caused by rain-induced mining disruptions and the disruption of spiraling Covid-19 cases in Kerala, the key producer.
Finally, high import duties and abnormal increases in ocean freight rates made imports less attractive, causing major consuming industries to buy from local markets.
In futures, September’s most active delivery was up 0.54 percent from Monday’s closing price to close at ₹ 172.02 per kg with 34-lot volume on the Multi Commodity Exchange (MCX).
RSS-3 (spot) improved to ₹ 132.01 (131.69) per kg in Bangkok. SMR20 reaffirmed up to ₹ 122.68 (120.45) and latex to ₹ 90.09 (89.14) per kg in Kuala Lumpur.
The natural rubber contract for September delivery rose 2.41% from the previous day’s closing price to close at 12.88 yuan (₹ 147.29) per kg, with a volume of 203 lots in trading. trading on the Shanghai Futures Exchange (ShFE).
September delivery was up 0.53 percent from last day’s settlement price to close at ¥ 189.5 (₹ 126.83) per kg with volume of 33 lots on the Osaka Exchange, Japan.
Rubber spot rates (₹ / kg): RSS-4: 173.50 (173.50), RSS-5: 171.50 (171.50), ISNR20: 165 (165) and Latex (60% drc): 126 (126).