MARKET COMMENTARY
Weakness prevailed in the overseas natural rubber markets. TOCOM rubber futures hit a two month low on Tuesday, as concerns over demand from the top natural rubber consumer, China intensified. However, the rise in crude oil prices lend firm support.
In the Indian market, NMCE rubber futures finished up on Monday in lackluster trades, while spot markets in the major natural rubber producing state of Kerala stayed shut owing to State Assembly Elections.
MARKET NEWS
Natural rubber output from the world’s top producing countries will see a nominal rise of about 1.3% in the calendar year 2016 to 11.2 mln tn as a long phase of low prices has hurt planting of the cash crop, Sheela Thomas, secretary-general of the Association of Natural Rubber Producing Countries, said.
China’s rubber imports (both natural and synthetic) in April amounted to 500000 tonnes, down 7.4 percent from a month earlier.
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.
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Geofin Comtrade
