MARKET COMMENTARY
While the underlying sentiments stay sanguine, natural rubber is seen retreating on Friday. TOCOM rubber futures were off eight and a half month peak, shedding more than two percent, probably on profit booking. However, rising crude oil prices and optimism over China lend support. In the local market, on Thursday, natural rubber prices continued to rally. In the spot market, RSS4 grade rubber was quoted at its highest level in about 20-months. Upbeat cues from the major overseas natural rubber market coupled with limited supplies bolstered prices.
MARKET NEWS
India’s natural rubber production fell to its lowest level in about two decades in 2015-16 to 563000 tonnes, a 13 per cent fall from the previous year’s production of 645000 tonnes. Consumption declined as well, by three per cent on YoY basis to 987540 tonnes.
A Ajithkumar, secretary to the Kerala Governor, has been named as the new chair of the Rubber Board.
China’s imports of rubber (natural and synthetic rubber) jumped 74.2 per cent to 540000 tonnes in March compared to a month earlier.
India Meteorological Department, in its first forecast for 2016 South-West Monsoons, have predicted a‘above normal’ monsoon rains for this year.
Japan’s weather bureau said that 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.
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Geofin Comtrade
