MARKET COMMENTARY
Sentiments seem to be have turned sanguine in natural rubber market. In the major overseas market, natural rubber is seen stretching the last day’s spike on Tuesday. TOCOM rubber futures hit an eight month high on firmer crude oil prices and concerns over output from the major natural rubber growing areas due to unfavorable weather. Expectations of pickup in demand from the top natural rubber consumer China supported the sentiments as well. In the local market too, upbeat moves were witnessed on Monday. Quotes for RSS4 grade rubber in the spot market jumped to its highest level since July last year. Apart from positive cues from the overseas market, thinning supplies bolstered prices.
MARKET NEWS
Japan’s weather bureau said on Monday there was a high possibility that a La Nina weather pattern would emerge in summer after El Nino ends.
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.
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Geofin Comtrade
