MUMBAI – Rubber contracts closed lower on the Indian Commodity Exchange today as overall sentiment remains bearish after the ongoing nationwide lockdown was extended to May 17, hitting trade in key markets of Kerala.
The most-active May contract ended 0.8% lower at 11,165 rupees per 100 kg.
Demand outlook for the commodity remains weak amid the COVID-19 pandemic, said Kerala-based rubber trader Biju Thomas. India’s confirmed COVID-19 cases have crossed 42,500, while the death toll has risen to 1,373.
Demand from tyre makers, the key buyers of rubber, has disappeared during the lockdown. Overall operations are at a standstill, thereby, creating bearish sentiment, said Rajiv Budhraja, director general at Automotive Tyre Manufacturers Association.
Lack of fresh cues from benchmark rubber contracts on tge Tokyo Commodity Exchange also weighed on the domestic contracts. Prices of rubber on TOCOM were unavailable today as the exchange was closed for Greenery Day.
The bourse will resume trade on Thursday. On Tuesday, the bourse will remain shut for Children’s Day and on Wednesday for a substitute day, according to the exchange holiday list.
On Friday, the most active October contract on the Japanese bourse settled at 148.8 yen (about 105.4 rupees) per kg, down 1.8 yen from the previous close.
Source Global Rubber Markets