MARKET COMMENTARY
TOCOM rubber futures declined for the first time in five days on Wednesday. The benchmark November rubber futures shed more than four percent pressurized by fall in crude oil, firmer yen and on cues from SHFE rubber futures. Lacklusture economic data from China weighed on as well.
In the Indian markets on Tuesday, the commodity traded rather firm. Quotes for RSS4 in the physical market inched higher, boosted by rise in natural rubber prices in the major overseas market and on thinning supplies to the market. However, on NMCE, it pared initial gains to end tad lower.
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
