MARKET COMMENTARY
TOCOM rubber futures are seen bouncing up from the four month lows as the week commences. The benchmark November rubber futures on Monday gained over 3.5 per cent, probably on bargain buying after the recent slide. In the meantime, SHFE reopened today after Dragon Boat Festival holidays. Rubber futures on the bourse are seen rising as well.
In the Indian markets last week, quotes for RSS4 grade rubber rose to one month high before edging lower towards the close of the week. Limited supplies and unfavorable weather lend firm support though steep slide in the major overseas natural rubber market weighed on overall market sentiments.
MARKET NEWS
Malaysian government announces RM500 cash aid for rubber smallholders and rubber tappers.
The Rubber Board has started a Call Centre at its Head Office to work as a centralized contact centre for receiving to telephone calls from the public seeking information about the services of the Board and also technical advice regarding cultivation, production, processing etc. of rubber.
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.
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Geofin Comtrade
