MUMBAI, Oct 26 (Reuters) - Indian rubber futures rose on
Friday tracking overseas market and as growers held back stocks
in anticipation of a further rise in prices, analysts said.
The December contract on the National Multi-Commodity
Exchange <NMRUZ7>, which hit 9,894 rupees during intra day
trade, ended at 9,840 rupees per 100 kg, up 0.7 percent.
"The main factor was a firm Tokyo market...higher crude
prices also helped the commodity," said Alex Mathews, an analyst
with Geojit Financial Services Ltd.
Tokyo rubber futures rose to their highest in almost five
months on Friday on the back of tight supply and record oil
prices.
Oil rallied to a fresh record high above $92 a barrel on
Friday as the dollar tumbled to a record low, Washington imposed
new sanctions on Iran and gunmen shut more oil production in
Nigeria.
Firm energy prices was a major reason for the heavy buying
in rubber, said N.V. Vinayak, an analyst with Karvy Comtrade
Ltd.
Higher oil prices usually prompt a shift to natural rubber
from synthetic rubber -- a petrochemical product.
Growers were just holding up their stocks, expecting a rise
in prices due to supply shortage, said Biju John, a
Kottayam-based rubber dealer.
Production is likely to fall by 60,000 tonnes in the year to
March 2008 from an earlier estimate of 803,000 tonnes due to
heavy rains and mosquito-spread viral fever Chikungunya.
The December contract hit a high of 10,380 rupees on October
18 due to supply concerns and demand from tyre makers.
Tyre makers account for more than half of the total rubber
consumption.
((Reporting by Debiprasad Nayak, editing by Prem Udayabhanu;
Reuters Messaging:[email protected]; +91 22 6636 9061))
Keywords: INDIA RUBBER FUTURES/