MARKET COMMENTARY
TOCOM rubber futures continued its upwards journey while SHFE rubber futures steadied on Tuesday. The most active October rubber futures hit a nine month high, bolstered by rising crude oil prices and optimism over demand from China.
Gains in the major overseas natural rubber market along with limited supplies sustained natural rubber in the local market. RSS4 grade rubber in the spot market stayed near 21-month high on Monday.
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
