MARKET COMMENTARY
Mixed trend was witnessed in the local natural rubber market on Tuesday. Quotes for RSS4 in the spot market inched higher in lackluster trades, while NMCE rubber futures tumbled over two percent. Limited supplies to the market probably lend firm support though jaded demand and higher imports weighed on. In the overseas market on Wednesday, natural rubber is trading on the negative turf. TOCOM rubber futures slipped from the three week high probably tracking losses in crude oil, equities and strengthening yen. SHFE rubber futures declined as well.
MARKET NEWS
Thailand’s military-led government on Tuesday approved about 87 billion baht ($2.43 billion) in loans to help farmers who have been hit hard by falling commodity prices and widespread drought.
TOCOM February rubber futures expired with 156 lots (1 lot=5tonne) being delivered compared to 131 delivered in January.
According to the Rubber Board, natural rubber imports in the country Jumped 21 per cent in January to 35174 tonnes compared to a year ago while production was 56000 tonnes, down 3.4 percent.
Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 0.2 percent to 275897 tonnes from last release on Feb 05.
Crude rubber inventories at Japanese ports stood at 12,870 tonnes as of Jan. 31, up 11.8 percent from the last inventory date, data from the Rubber Trade Association of Japan showed.
Kerala government allocates five billion rupees for rubber farmers in the 2016-17 Budget.
[embeddoc url=”https://drive.google.com/file/d/0BzrsaGiMYhEka1Q1TzhEcDR6ZE0/preview” viewer=”drive”]Geofin Comtrade
