MARKET COMMENTARY
TOCOM rubber futures are seen stretching gains on Thursday while SHFE rubber futures pared initial losses. The benchmark December rubber futures on TOCOM has jumped nearly four per cent probably supported by a weaker yen. However, overnight sharp plunge in crude oil prices weighed on amidst lack of solid directional cues.
On Wednesday, natural rubber in the Indian market was trading on flat note. In the physical market, market tone was quiet and RSS4 hung near Rs.125 a kg. On NMCE, barring the expiry related fluctuations, the commodity was held in tight ranges.
MARKET NEWS
Vietnam’s rubber exports in the first half of this year rose 22 per cent on year on year basis to about 421300 tonnes according to the nation’s Customs department.
A contract for procurement of 80000 tonnes of Thai rubber us planned to be finalized by September 2015 according to Russian Minister of Industry.
According to preliminary trade data released by the China’s General Administration of Customs rubber imports by the country rose 17.9 per cent to 330000 tonnes in June.
Malaysia’s natural rubber (NR) production in May 2015 dropped 11.3% to 38,923 tonnes compared with the same period last year, according to the country’s Statistics Department.
According to the Rubber Trade Association of Japan natural rubber imports by the nation rose 17.2 per cent on YoY basis to 62256 metric tonnes.
Based on the Kerala government’s price stabilization project, Kerala State Cooperative Rubber Marketing Federation has decided to procure 5000 tonnes of rubber in the first phase.
Kerala government has issued orders, framing the guidelines for the implementation of a ‘Rubber Production Incentive Scheme’, which guarantees a price of Rs 150 for a kilogram of rubber.
Kerala State Chief Minister informed the Assembly that government would ensure that small-scale rubber growers with two hectares of land or less will get an assured price of Rs.150 a kg.A total of Rs 300 crore has been earmarked in the state budget for ensuring fair price for rubber which will be utilized for this new scheme.
Rubber Board has clarified that Kerala and Kanyakumari dist. Of Tamil Nadu would continue to receive subsidy for planting and replanting rubber.
Malaysia plans to use 10 per cent of its rubber supply in roads from 2016 as it looks to eat into excess supplies and shore up rubber prices.
Source: Geofin Comtrade
