MARKET COMMENTARY
TOCOM and SHFE rubber futures are seen trading in thin ranges on Thursday as the US Federal Reserve left the interest rates unchanged. Thai rubber purchase scheme lend support.
Bearishness prevailed in local natural rubber market as weak demand continued to suppress prices. RSS4 in the physical market quoted as low as Rs.94 a kg on Wednesday even as market is about to enter the lean production phase.
MARKET NEWS
Thai government has hinted that it may continue with its rubber subsidy programme after it expires in June, if the price slump remains unresolved.
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.
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 Nhava Sheva, 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.
[embeddoc url=”https://drive.google.com/file/d/0BzrsaGiMYhEkWjBCTUhydmlRSVk/preview” viewer=”drive”]Geofin Comtrade
