MARKET COMMENTARY
On Thursday, natural rubber in the major overseas market is on a negative turf. TOCOM rubber futures slid to one week low, shedding more than 1.5 per cent as yen gathered strength against the US dollar. Lessening expectations of an interest rate hike by the US Federal Reserve following the minutes from the US FOMC meeting weakened dollar.
In the Indian markets on Wednesday, natural rubber prices weakened. According to sources, improvement in arrivals to the market and lacklusture demand from the tyre sector dampened maintained downwards pressure on prices. NMCE rubber futures tumbled nearly three per cent while in the spot market RSS4 slipped to Rs.140 a kg.
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.
[embeddoc url=”https://drive.google.com/file/d/0BzrsaGiMYhEkVlZLN2R4SnZCelU/preview” viewer=”drive”]
Geofin Comtrade
