KOCHI (Commodity Online) : All Tokyo rubber futures contracts are trading in red even as Indian contracts are exhibiting mixed trends. Noon session in Tokyo witnessed November contract rubber losing as much as 5 yen which later pared down losses.
TOCOM November 2011 rubber contracts saw settlement prices hitting 392.8 Yen, a loss of 2.8 yen at 12.44 pm IST. June contract rubber is also being traded at a loss in same figures and is at 422 yens.
Meanwhile at India’s NMCE near month contracts are in green even as August and November contracts are in red.
The TOCOM loss is attributed to rate tightening in China spooking the markets along with a bleak Wall Street outlook and a downtrend in crude oil. Further, Thailand and Indonesia supplies have started to trickle in to the market system. Over a short term, the TOCOM trend is expected to continue.
However, the relative market disconnect—TOCOM trend not reflecting in India futures in a big way – is a sign attributable either to speculation gaining upper hand or to robust domestic demand.
Spot rubber prices have gained in a big way in India with prices appreciating to the tune of Rs.1866 over a month in April to maintain an average figure of Rs.25800.
