MARKET COMMENTARY
Sentiments are feeble in the major overseas natural rubber market as the week culminates. TOCOM exchange reopened today after the Golden Week holidays and rubber futures on the bourse slumped with the benchmark October rubber futures slumping three per cent to hit its weakest level in three weeks. Strong yen weighed on. SHFE rubber futures tumbled as well. In the meantime, the mood was mixed in the local market on Thursday. RSS4 declined in the spot market, while NMCE rubber futures rose for the first time in eight days.
MARKET NEWS
An Action Taken Report (ATR) of the Parliamentary Standing Committee on commerce chaired by Chandan Mitra has criticised the Centre for its indifferent attitude towards natural rubber (NR). The report says that the government has been indifferent to the woes of rubber farmers and permitted excess imports, delayed the national policy on rubber and kept key posts in the state-run Rubber Board vacant for more than two years.
According to a deputy chairman of the Rubber Holder Co-operatives Federation of Thailand,the production of natural rubber has fallen about 50% from January to April year-on-year due to the drought.
Vietnam’s natural rubber exports could drop 12 percent from a year ago to around 1 million tonnes in 2016, as part of the country’s commitment to cut supply and help stabilise prices, Vietnam Customs said.
Sinochem International Corporation plans to acquire Halcyon Agri Corporation Limited, one of the top five natural rubber companies in the world. If the deal goes well, Sinochem International Corporation will become the world’s largest natural rubber supplier.
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.
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Geofin Comtrade
