MARKET COMMENTARY
TOCOM rubber futures jumped on Monday, with the benchmark July rubber futures rising about three per cent earlier today bolstered by a weaker Japanese yen. However, decline in crude oil prices and weak economic data from China weighed on.
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 last week, 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
Tripura’s natural rubber output is expected to increase to about 55,000 tn in the current financial year ending March, up from 40,000 tn produced in 2014-15 (Apr-Mar) according to the Rubber Board.
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.
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Geofin Comtrade
