MARKET COMMENTARY
Strengthening yen against the US dollar dampened the sentiments in TOCOM rubber futures. The benchmark September rubber futures on the bourse hit a one week low earlier today as yen rose to 17-month high against the US dollar. However, firmer oil prices probably lend lower level support.
In the local market, sentiments stayed sanguine. Natural rubber continued to rise in the spot as well as futures market. In the physical market, RSS4 grade rubber was quoted around Rs.120 kg on Monday, its highest level since August last year.
MARKET NEWS
India’s natural rubber imports from Thailand during calendar year 2015 rose over 10% on year to 121,700 tn, according to data from the Thailand Natural Rubber Association.
Indonesia government will buy 500,000 tn of natural rubber produced across the country to help support prices.
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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Geofin Comtrade
