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Physical Rubber prices witness improvement on Thursday

18 Nov 2016 Evaluate

Physical Rubber prices showed improvement on Thursday. Despite the peak production season, rubber arrivals into the market in November has affected badly in the wake of currency crunch. Small farmers, especially those engaged in rubber farming in less than one acre, are now reluctant to collect cheques from traders, and even stopped sheet delivery due to currency shortage. Meanwhile, the emerging situation has also forced tyre-manufacturing companies to slow down the procurement from the open market.

Spot prices for RSS-4 variety jumped to 123/ kg compared to its previous closing of Rs 122/ kg; while the RSS-5 variety climbed to 120/ kg compared to its previous closing of Rs 119/ kg.

In the futures market, contract of December delivery fell to Rs 127.22 compared to its previous closing of Rs 129.38, while January delivery closed at Rs 129.28 compared to its previous close of Rs 131.90 on the National Multi Commodity Exchange (NMCE).

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