MARKET COMMENTARY
Prior to the key central bank meeting outcome from the US, natural rubber is seen ticking up in the major overseas market on Wednesday. TOCOM rubber futures bounced off from the two week lows, probably buoyed by rise in crude oil, as investors await the monetary policy announcement by the US FOMC. SHFE rubber futures rose as well.
Natural rubber traded rather flat in the Indian market on Tuesday. Declines in the major overseas market and expiry of the near-month rubber futures on NMCE weighed on the sentiments though limited arrivals to the market lent firm support.
MARKET NEWS
Vietnam is soon likely to join the International Rubber Consortium Ltd (IRCo), a rubber cartel that ensures fair and remunerative income for small holders of its member nations, an industry body official said.
Despite the government’s measures to stabilise the rubber market, it may take a couple of years to correct the oversupply and the resultant lower prices and ensure markets offer farmers sustainable prices, said Sheela Thomas, secretary general of the Association of Natural Rubber Producing Countries.
Indian’s natural rubber production and imports falls sharply in February by 10 and 12 percent respectively according to the Rubber Board. The country imported 27280 tonnes and production stood at 38000 tonnes. Consumption declined as well by 1.0 per cent to 82500 tonnes.
The government is in the process of launching an insurance scheme for the plantation sector, including rubber, which would cover price fluctuations and other risks, Commerce and Industry Ministry Additional Secretary RajaniRanjan Rashmi said.
Indonesia, the world’s second biggest rubber exporter, plans to cut its natural rubber shipments by 96,000 tn in March-May and by 144,000 tnin June-August, Moenardji Soedargo, chairman of Indonesia rubber association or Gapkindo said.
[embeddoc url=”https://drive.google.com/file/d/0BzrsaGiMYhEkSm5IalZBNHhOOE0/preview” viewer=”drive”]Geofin Comtrade
