MARKET COMMENTARY
With all attention locked on US FOMC meeting, TOCOM rubber futures are seen trading in thin ranges with a negative bias on Tuesday. The sentiments stayed feeble on lingering worries over demand from China and weak crude oil prices. In the Indian market, meanwhile, natural rubber on Monday, touched its lowest levels in more than six year. In the spot market RSS4 was quoted around Rs.100 a kg, its weakest level since August 2009. Poor demand coupled with broad weakness in the major overseas market and tanking crude oil prices weighed on despite thinning arrivals.
MARKET NEWS
India’s natural rubber production in November declined 16.7 percent to 50000tonnes according to the data from the Rubber Board. Imports declined as well by 13.7 per cent to 37445 tonnes.
Thailand on Tuesday approved $139 million in additional loans to help rubber farmers in the Southeast Asian country hit by weak global prices of the commodity.
Vietnam to join International Rubber Tripartite Council as a strategic partner.
Following the meeting of International Rubber Tripartite Council, officials have pledged to establish a new regional rubber trading platform that could be up and running by June 2016. Also, it has asked upon to implement a scheme in 2016 that would limit rubber supplied to market.
Crude rubber inventories at Japanese ports stood at 9742tonnes as of Nov.20, down 8.1 percent from the last inventory date (Nov.10), data from the Rubber Trade Association of Japan showed.
China agrees to buy 200000 tonnes of natural rubber from Thailand according to government officials.
According to the Association of Natural Rubber Producing Countries, natural rubber output among its member countries could fall for the second consecutive year in 2015 as farmers curtail tapping in this peak production period owing to low prices.
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Geofin Comtrade
