Colombo Rubber Auctions yesterday took a sharp turn upwards following a significant price tumbling in the last two auctions. Latex Crepe 1X traded at Rs.670, whilst RSS1 Touched Rs.560. Scrap Crepe 3X was also traded at Rs.515.
According to brokers, rubber output in Sri Lanka has been very low due to very warm climate and dry soil conditions, which is slowing down the flow of latex. A similar drop in production is now reported in Thailand and Malaysia as well.
In Singapore, Sicom rubber futures were mixed midday. Tight supply amid the low-production season is likely to support rubber prices, limiting any downside, said a trader. Sicom is likely to take Tocom (Japan) cues during the rest of the day. The benchmark Sicom April RSS3 contract trades 2.7 U.S. cents higher at 560 cents per kg.
China, Shanghai Futures Exchange natural rubber settles higher, tracking local equities. Analysts said technical buying after the recent fall also contributes to price gains; they tip short-term consolidation as investors watch developments from Libya and Japan’s nuclear emergency.
Tocom rubber futures settled higher after gaining as much as 6.3% intraday; although the Thai government on Monday put on hold further measures to boost prices due to a strong rebound.
source - www.dailymirror.lk
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