MARKET COMMENTARY
TOCOM rubber futures plunged to seven year low on Wednesday. The benchmark, June rubber futures are seen stretching losses after weak data from China fanned worries over demand from the top consumer. Strengthening Japanese yen against the US dollars added to the fall. SHFE rubber futures stretched the losses as well.
Sharp declines seen in major overseas market last day may have hampered the sentiments in the local market as well. NMCE rubber futures decline about two per cent on Monday while RSS4 in the physical market inched down after trading firm for the past few days.
MARKET NEWS
Thailand’s Bank for Agriculture and Agricultural Cooperatives will lend another 5 billion baht to rubber farmers seeking to do extra jobs during the ongoing price slump.
New plantings of rubber have been on a decline over the last three years and were down around 19% in 2014-15 (Apr-Mar), the Ministry of Commerce and Industry said.The total area under newly planted and replanted rubber trees was at 32,000 ha in 2014-15, down 11.1% from 36,000 ha a year ago.
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.
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.
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