MARKET COMMENTARY
Sentiments seems to be muddled as this week’s session concludes. TOCOM rubber futures inched down while SHFE rubber futures rose on Friday. Successive holidays in the major overseas market may probably be weighing on. Malaysian and Indonesian market are closed on account of Id while TOCOM exchange will be closed on Monday on account of Oceans Day. Natural rubber in the Indian market, meanwhile, ended on a flat note on Thursday. In lackluster trades, RSS4 in the physical market stayed near Rs.125 a kg while on NMCE, it was held in narrow ranges on subdued demand. However, limited supplies and gains in the international market lend support.
MARKET NEWS
Thailand is set to lobby Vietnam at a meeting in Bangkok next week to join the International Rubber Consortium Ltd (IRCo), a move that would help to stabilise rubber prices.
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.
Source: Geofin Comtrade
