MARKET COMMENTARY
TOCOM and SHFE rubber futures are seen stretching losses on Friday, heading to end the week in the red.
Bearishness prevailed in the local natural rubber market as weak demand continued to suppress prices. Quotes for RSS4 in the physical market stayed near the multi-year low, even as the markets are about to enter the lean production phase. Subdued demand and weak cues from the major overseas natural rubber market are keeping prices on the negative turf despite considerable drop in local natural rubber production.
MARKET NEWS
Thai cabinet has given a green light for an Agriculture Ministry scheme for another 4.5 billion baht in aid for rubber planters by subsidising the interest on manufacturers’ loans.
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.
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Geofin Comtrade
