Spot rubber ended in red on Wednesday. The commodity opened firm but lost the initial gains on buyer resistance coupled with profit booking at higher levels.
“This may be a temporary phenomenon and the market is likely to recover within a few sessions” a dealer said.
A leading tyre maker was buyer on sheet rubber at ₹164 a kg but most traders preferred to hold their stocks expecting an immediate recovery in prices.
RSS-4 declined to ₹165 (167) a kg as per traders. The grade weakened to ₹165.50 (166.50), according to the Rubber Board. The trend was partially mixed as Latex improved further, driven by a steady rise in demand.
In futures, the most active January contracts were down 1.05 per cent from Tuesday’s settlement price to close at ₹165.49 per kg with a volume of 35 lots on the Multi Commodity Exchange (MCX).
RSS-3 (spot) improved to ₹144.95 (142.91) per kg at Bangkok. SMR20 firmed up to ₹133.15 (130.67) and Latex to ₹99.93 (97.31) per kg at Kuala Lumpur.
The natural rubber contract for the January 2022 delivery lost 0.03 per cent from previous day’s settlement price to close at 14.45 Yuan (₹168.94) per kg with a volume of 1,398 lots in daytime trading on Shanghai Futures Exchange (ShFE).
The most active June 2022 delivery was down 0.29 per cent to close at ¥243.1 (₹156.13) per kg with a volume of 147 lots on the Osaka Exchange (OSE), Japan.
Spot rubber rates (₹/kg) were: RSS-4:165 (167), RSS-5: 161.50 (163), ISNR20: 149 (150) and Latex (60% drc): 130 (127).