MARKET COMMENTARY
Sentiments stayed feeble in the major overseas natural rubber market. While SHFE exchange is closed for Dragon Boat Festival on Thursday, TOCOM rubber futures slipped to its weakest level since mid-February this year. Despite firmer crude oil prices, lingering worries over demand from the top consumer China continued to hamper the overall market sentiments. Strengthening yen may to have hampered the sentiments. Bucking the trend in the major overseas market, the commodity traded rather firm in local markets on Wednesday boosted by thinning supplies and improving demand. Quotes for RSS4 grade rubber rose to its highest level in about a month.
MARKET NEWS
IMD sees the onset of Southwest monsoons over Kerala by June 9.
Rubber imports by China declined six per cent in May to 470000 tonnes compared to a month earlier.
Global natural rubber output could rise just 0.3 percent in 2016 from a year ago as drop in yields are seen offsetting expansion in the tapping area, the Association of Natural Rubber Producing Countries (ANRPC) said in a statement. Production from the ANRPC members, which together account for about 92 percent of global output, could rise to 11.07 million tonnes in 2016 from 11.04 million tonnes a year ago, Sheela Thomas, secretary-general of the ANRPC said.
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.
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Geofin Comtrade
