MARKET COMMENTARY
A rebound is being seen in natural rubber in the major overseas market. On Thursday, TOCOM rubber futures edged higher towards the five month high. Bounce back seen in SHFE rubber futures and firmer crude oil prices may have lend support.
On Wednesday, natural rubber in the local market trades flat to negative. Amidst subdued demand, rise in production and weak cues from the major overseas market may have maintained downwards pressure. In the spot market quotes for RSS4 lingered around Rs.115.5 a kg and on NMCE, the commodity was seen trimming initial losses.
MARKET NEWS
According to the Rubber Board, India’s natural rubber production rose 20 per cent in September to 60000 tonnes on year on year basis.
TOCOM October rubber futures expired with 466 lots (1 lot= 5 tonnes) compared to 279 lots delivered in September.
Natural rubber imports by China in September declined 36.52 per cent to 188716 tonnes.
India has been unanimously elected as Chairman of the Association of Natural Rubber Producing Countries (ANRPC). Representing Govt. of India, Mr. A. Ajith Kumar IAS, Chairman, Rubber Board took charge from Royal Govt. of Cambodia in the 39th Assembly Session of ANRPC held at Guwahati. The tenure of Chairmanship will be for one year. The Vice-Chairmanship is for Vietnam.
According to the Association of Natural Rubber Producing Countries, natural rubber supply will fall short of demand from 2020 onwards.
[embeddoc url=”https://www.dropbox.com/s/pjcoq2bhpqn200h/Rubber_Report%2C_27_Oct_2016.pdf?dl=1″ viewer=”google” ]
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