MARKET COMMENTARY
Bearishness prevailed in the local as well as international natural rubber market. On Wednesday, indecisive moves are being witnessed on TOCOM exchange. The benchmark May rubber futures is seen trading in tight ranges with a negative bias after testing two week lows as investors await the outcome the US FOMC meeting. In the Indian market, meantime, on Wednesday, natural rubber prices stayed near its lowest level in more than six years. Weakness in the major overseas market coupled with jaded demand continued pressurizing prices to move down despite falling production.
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
