MARKET COMMENTARY
Overnight fall in crude oil prices coupled with intensifying worries over demand from the top consumer China dragged down natural rubber in the major overseas market. TOCOM rubber futures declined more than three per cent to its weakest level since February this year, while SHFE rubber futures tumbled five per cent, stretching previous day’s losses. Natural rubber in the local market on Thursday declined as well. Quotes for RSS4 in the spot market dipped to Rs.140 a kg while the most active August rubber futures on NMCE shed one per cent, weighed down by weakness in the major overseas natural rubber market. However, limited supplies to the market lend firm support.
MARKET NEWS
NMCE imposes additional margin (cash) on both long side and short side of July month contract of Rubber with effect from Thursday, 7th July 2016.
Vietnam will export an estimated 427,000 tonnes of rubber in the first half of this year, up 3.1 percent from the same period last year according to country’s General Statistics Office.
According to the Rubber Board, natural rubber production in India declined 2.5 per cent on year-on-year basis in April to 39000 tonnes.
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.
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.
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Geofin Comtrade
