As Rupee drops, rubber too drops

The Indian Rupee dropped to all time low of 62 against dollar. Natural rubber imports in July jumped 39.2% to 29,311 tonnes, when compared to July 2012. Drop in domestic production due to heavy rainfall has forced tyre manufacturers to increase import of the commodity. Rains giving way to the resumption of tapping in most plantations in Kerala, the production and supply may improve in the coming weeks. The natural rubber prices dropped on buyer resistance, amidst low volumes as there had been no quantity sellers in the market.

Sheet rubber declined to `.188 a kg at Kottayam, while RSS3 grade closed with a positive note at `.159.91 a kg at Bangkok, Malaysian SMR20 closed at `.146.41 a kg. On the Tokyo Commodity Exchange, August futures series closed at ¥255.7, September at ¥261.2, October at ¥261.8, November at ¥262.8, December at ¥265.1, and the contract for delivery in January closed at ¥267 a kg. On National Multi Commodity Exchange, natural rubber September futures closed at `.179.28, October at `.171.24, November at `.167.98 and December at `.167.61 a kg.

Read lot more in Rubber4U – 1st September 2013 issue