MARKET COMMENTARY
on Wednesday, TOCOM and SHFE rubber futures are seen trading in thin ranges as markets await the US FOMC monetary policy decision.
Bearishness prevailed in local natural rubber market as weak demand continued to suppress prices. While it was a holiday yesterday on account of Republic Day, on Monday, natural rubber stayed under pressure in the spot as well as futures market despite upbeat cues from the major international natural rubber market. RSS4 in the physical market stayed near multi-year lows.
MARKET NEWS
According to the Rubber Board, India’s natural rubber production declined to 58000 tonnes in December 2015 from 63000 tonnes produced during the same period in 2014 while imports rises 8.0 per cent to 37078 tonnes.
Thailand’s National Council for Peace Order (NCPO) has tasked the Peace and Order Maintaining Command (POMC) with regulating a new para-rubber market. The Rubber Authority of Thailand launched the 373 new markets in 35 provinces on Monday under strict orders to regulate buying and selling according to government rules with a focus on benefiting growers.
Import of natural rubber will not be allowed during the period January 21 2016 to 31st March 2016 under Advance Authorisation to be issued or revalidated on or after 21st January, 2016, the Directorate general of Foreign Trade (DGFT) said in a notification.
Government of India has restricted imports of natural rubber only through ports of Chennai and NhavaSheva, the Directorate General of Foreign Trade said in a notice.
Thai government spokesman Maj. Gen. Sunsern Kaewkumnerd said on Tuesday that the cabinet has approved allocation of 5.47 billion baht ($151 million) from the state budget to buy up to 100,000 metric tons of rubber directly from local farmers for 45 baht ($1.24) a kilogram.
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Geofin Comtrade
