Spot rubber lost ground following the sharp decline in global trendsetters on Tuesday. The overseas markets tumbled in response to the reported outbreak of the fast-spreading new strain of the coronavirus in the UK and that several counties closed their borders, according to Jom Jacob, Former Senior Economist at Association of Natural Rubber Producing Countries (ANRPC).
At the SICOM, the TSR20 contract for March 2021 hit US$153.3/100 kg, down 8.0 dollar from Monday's settlement price. Due to panic selling, the passing of the massive $900 billion Covid-19 aid package by the US Congress could not evoke any positive sentiment in the market.
RSS 4 declined to Rs.157.00 (158.00) per.kg according to traders and the Rubber Board. The grade dropped to Rs.153.00 (154.00) per kg, as per Dealers. "However, as we are passing through the peak production season, arrivals are expected to rise, which could weigh on the sentiments further. The upcoming Christmas-New Year holiday season could also affect the trades", said Anu V Pai, Commodity Research Analyst, Geojit Financial Services.
Natural rubber futures closed lower in day time trading on Shanghai Futures Exchange (ShFE). The most active NR contract for May 2021 delivery was down by 1,065 Yuan (Rs.12,022.07) to close at 13,905 Yuan (Rs.156,964.27) a tonne.
RSS 3 (spot) surrendered to Rs.167.85 (173.77) per kg at Bangkok. SMR 20 weakened to Rs.115.53 (118.65) while Latex improved a tad to Rs.108.69 (108.66) per kg at Kualalumpur.
Spot rubber rates (Rs/kg) were: RSS4:157.00 (158.00); RSS5: 147.50(148.50); ISNR20: 128.00 (130.00) and Latex (60% drc): 104.50 (106.00).