MARKET COMMENTARY
TOCOM and SHFE rubber futures jumped over two per cent on Thursday. The benchmark, July rubber futures on TOCOM rose following past two days of losses tracking gains in crude oil. Moreover, International Tripartite Rubber Council deciding to implement an export quota scheme from March onwards may support the prices as well. In the meantime, activities were sluggish in local natural rubber market. On Wednesday, harthal in Kottayam, Kerala, major rubber producing belt affected the activities in the spot market. On NMCE, downtrend continued in rubber futures.
MARKET NEWS
Asia’s top rubber producers will implement an export quota scheme from March onwards that targets 615,000 tonnes of cuts within the first six months, a statement from the International Tripartite Rubber Council (ITRC) said.
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.
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Geofin Comtrade
