MARKET COMMENTARY
Indecisive moves are being witnessed in rubber futures on TOCOM exchange, while SHFE rubber futures are seen stretching previous day’s losses on Wednesday. The benchmark August rubber futures on TOCOM steadied after rising for the past four days as investors probably awaiting for fresh directional cues after hitting two week high.
Natural rubber in the Indian market exhibited a mixed trend on Tuesday. Quotes for RSS4 in the physical market firmed up to Rs.113 a kg, supported to thin arrivals. However, NMCE rubber futures declined, probably on profit-booking. The upcoming consecutive holiday may too have weighed on the sentiments as well.
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Japan’s crude rubber stocks totaled 13,276 metric tons as of March 10, down 3.6% from 13,774 tons as of February 29, data from the Rubber Trade Association of Japan showed Tuesday.
China’s imports of natural rubber fell 21.35 percent in February to 139,376 tonnes.
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 37000 tonnes. Consumption declined as well by 1.0 per cent to 82500 tonnes.
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