MARKET COMMENTARY
Natural rubber in the major overseas market is seen rising on Tuesday. TOCOM rubber futures edged higher for the fourth successive day, moving further away from the three month lows hit last week, probably boosted by firmer crude oil prices and bargain buying. However, lingering worries over demand from the key consumer China weighed on. In the local markets on Monday, the commodity traded firm in the physical market, while on NMCE it was held in tight ranges. Positive cues from the major overseas market along with limited supplies supported prices in the local market.
MARKET NEWS
The Rubber Board has advised growers tapping once a week to cut production cost, the board said in a release today. “In rubber holdings, a major share of expenditure is for tapping, and there is a shortage for tappers also,” the release said. The advisory is in the wake of prevailing low prices of rubber in domestic markets, the Board said.
China may open up its commodities futures markets to overseas and financial investors, the country’s securities regulator said, as the world’s top consumer of many raw materials seeks to play a larger role in setting global commodities prices.
JK Tyre & Industries Ltd has set up a trading arm in Singapore to facilitate natural rubber imports, its Chairman and Managing Director Raghupati Singhania said.
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 tonne 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.
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Geofin Comtrade
