MARKET COMMENTARY
A mixed trend was witnessed in the local natural rubber market on Tuesday. Despite sharp plunges seen in the major overseas market, RSS4 in the physical market stayed firm near Rs.114 a kg on scanty supplies. However, on the futures platform, the commodity stayed under pressure and culminated the session in red. In the mean time, the commodity in the major overseas market on Wednesday is seen stretching previous session losses. Paring initial uptick, the benchmark April rubber futures on TOCOM is trading in red. Amidst concerns over China, investors may have probably chosen to stay on the sidelines prior to US FOMC meeting outcome.
MARKET NEWS
TOCOM October rubber futures expired with 101 lots being delivered compared to 645 lots being delivered a month earlier
Rubber inventories in the warehouse monitored by SHFE rose 3.3 per cent on weekly basis to 224382 tonnes last week.
Crude rubber inventories at Japanese ports stood at 11,443 tonnes as of Oct. 10, down 4.6 percent from the last inventory date (Sep 30), data from the Rubber Trade Association of Japan showed.
Bridgestone Corporation announced that it successfully built passenger tires with 100 per cent of its natural rubber-containing components derived from guayule, a desert shrub that grows in arid region.
Thailand’s Natural Rubber Policy Committee said the government will not provide a cash subsidy for struggling rubber famers, but will instead promote local consumption of rubber to boost price.
According to the Association of Natural Rubber Producing Countries, production from the key natural rubber producing countries declined 0.9 per cent (YoY) for the first eight months of this year.
Kerala government has modified some terms of subsidy scheme for rubber farmers. The government dropped Aadhaar as mandatory requirement for registration while extending the scheme to latex as well from October. Farmers will receive the difference between Rs.142 and the price of latex as fixed by the Rubber Board.
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Geofin Comtrade
