Market sluggish, weakness continues

The weakness continued in rubber prices due to expected more supply in the market soon because of the end of wintering season and in turn helping tyre companies maintain margins at elevated levels. The benchmark rubber contract on the Tokyo Commodity Exchange (TOCOM) for October delivery fell 2.4% or ¥5 a kg, to settle at ¥200 per kg. The most active rubber contract on the Shanghai futures exchange for September delivery fell 370 yuan to close at 13,820 yuan per tonne.

On Friday, the benchmark RSS4 grade rubber closed at `.142 a kg at Kottayam, while RSS3 grade closed at `.123.56 a kg at Bangkok and Malaysian SMR20 closed at `.101.31 a kg. On National Multi Commodity Exchange, June 2014 futures were trading at `.144.50 a kg, July at `.145.75, August at `.145.50 and September at `.145 a kg, while rubber mini contract for June was at `.145 a kg. On Tokyo Commodity Exchange, May 2014 futures series closed low at ¥190 a kg, June at ¥193.8, July at ¥196.4, August at ¥197.5, September at ¥199.4, and the contract for delivery in October 2014 closed at ¥200 a kg.

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