The Hindu Business Line : Rubber futures may rally

THE rubber market remained almost unchanged with minor variations in prices during the last week. Arrivals to the market continued to be low. Both the buyers and growers were keeping on the sidelines expecting the market to move according to their expectations.

Sheet rubber RSS 4 moved in a narrow band between Rs 49.75 and Rs 49 per kg to close at Rs 49.25 on Friday.

The futures market opened in a mixed note and remained sideways all through the week in line with expectation. The weather has been good since last week, and more raw material supply is likely to arrive in to the market in coming days.

July futures registered a 518 tonnes of volume. Its open positions were 264 lots on Friday up by 7 lots as against Monday.

Outlook: Kerala received only 74 per cent below normal rainfall for the week ended June 13. The situation has not improved significantly amid rains in regions of Pala, Todhupuzha, Muvatupuzha and Kottayam, which could only disrupt latex collection and fuel a price hike.

An abnormal rally could be expected over the next two weeks in case of delay in TOCOM June shipment or supply shortage.

The conditions seem to be favourable, but near month prices are unlikely to go down pressurising farther month contracts.

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