MARKET COMMENTARY
Natural rubber is seen retreating in the major overseas market as the week ends. TOCOM rubber futures edged down from the 16-month highs on Friday, probably on profit booking. Fall in SHFE rubber futures and weak crude oil prices weighed on as well. However, weakening Japanese yen against the US dollar may lend support.
In the Indian markets on Thursday, natural rubber traded steady to weak. RSS4 grade rubber in the spot market lingered around Rs.123 a kg in subdues trades. The recent government move to demonetize Rs.500 and Rs.1000 notes too has impacted the activities in the physical market. On NMCE, it ended the session in red with the near month December rubber futures declining more than 1.5 percent.
MARKET NEWS
Based on figures covering the period up to October 2016, total supply of natural rubber from ANRPC member countries is expected to post a near-zero growth (0.4%) during 2016.
Crude rubber inventories at Japanese ports stood at 7,318 tonnes as of Oct. 20, down 3.7 percent from the last inventory date, data from the Rubber Trade Association of Japan showed.
According to the Rubber Board, India’s natural rubber production rose 20 per cent in September to 60000 tonnes on year on year basis.
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.
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