Rubber prices hit a new record of Rs 142/kg

Speculative holding back of stocks by sellers and firm overseas cues from key Asian markets like Tokyo and Bangkok helped spot rubber prices rise on Thursday, with benchmark RSS-4 grade touching a new record high of Rs 142 a kg, dealers said.

The previous high for RSS-4 grade was Rs 141.50 on August 1, according to daily market data from Rubber Board.

Although the board had placed the price of the commodity at Rs 141.50 for that day, most traders said they sold the commodity at Rs 142 then.

Surge in rubber prices on Thursday was mainly supported by uptrend in Tokyo and Bangkok rubber futures, dealer said.

Overall supply of the commodity is weak due to growers holding back stocks as well as production in August being disrupted by rains in growing areas of Kerala, he said.

Although most growers place rain-guards on rubber trees, tapping is not undertaken during heavy rains, dealers said.

According to N Radhakrishnan, president of Cochin Rubber Merchants Association, rubber prices may ease by the first week of September as fresh stocks arrive.