MARKET COMMENTARY
SHFE rubber futures are seen bouncing up on Thursday after falling for past few days, while TOCOM exchange is closed for Mountain Day holiday. The front month September rubber futures on SHFE gained nearly two per cent, edging off from the 10-week lows.
Natural rubber in the Indian market showed a mixed trend on Wednesday. In the spot market, RSS4 inched down to Rs.143.5 a kg, weighed on down by weak cues from the major overseas market and subdued demand. On NMCE, however, the commodity managed to end in green.
MARKET NEWS
India’s natural rubber production rose 6.4 percent in June from a year ago to 50,000 tonnes as lower rainfall in the top producing southern state of Kerala allowed farmers to raise tapping, the Rubber Board said in a statement.The country’s imports in the month fell 4 percent to 37,336 tonnes, while consumption jumped 7.4 percent to 87,000 tonnes.
Rubber imports (both natural and synthetic) by China in the month of July rose 4.2 per cent to 430000 tonnes.
The Association of Natural Rubber Producing Countries expects the demand for natural rubber to stay weak in 2016 as well as 2017. According to the association natural rubber production among its member countries for the first seven months of 2016 stood at 5.899 million tonnes, up by 0.2 per cent on YoY basis, while consumption rose 4.4 per cent to 4.7 million tonnes.
The National Multi-Commodity Exchange said it will impose 20% additional cash margin on August rubber contract on both buy and sell positions from August 8th.
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Geofin Comtrade
