MARKET COMMENTARY
Natural rubber in the major overseas market is on the greener turf as the week ends. On Friday, TOCOM as well as SHFE rubber futures rose, with the most active January rubber futures on TOCOM gaining over one percent tracking movement in crude oil prices. Japanese yen weakening against the US dollar following the previous day’s surge aided the sentiments as well.
In the local market, on Thursday, the commodity stayed under pressure. Reversing initial up-moves, NMCE rubber futures ended on a negative note with the most active September rubber futures hitting its weakest level since mid-July. RSS4 grade rubber in the spot market stayed near 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.
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Geofin Comtrade
