MARKET COMMENTARY
Sentiments stay sanguine in the major overseas natural rubber market though holiday for TOCOM exchange and rising of margins and trading limits on SHFE may influence the sentiments. SHFE rubber futures are seen stretching gains on Wednesday, while TOCOM exchange is closed for Labour Thanksgiving Day holiday.
In the local markets on Tuesday, RSS4 grade rubber jumped in the physical market. The grade was quoted at its highest level in about three months. Upbeat crude from the major overseas market bolstered prices though subdued demand weighed on. In the meantime, NMCE rubber futures retreated following an initial rally to end more than one per cent down.
MARKET NEWS
The Shanghai Futures Exchange said on Tuesday it will raise margins and trading limits on futures contracts including copper, aluminium, zinc, lead, nickel, tin, rebar, hot rolled coil, rubber and bitumen effective from Nov. 24. It will raise margin requirements to 9 percent from 8 percent and the trading limit to 7 percent from 6 percent, the exchange said in a notice posted on its website.
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.
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Geofin Comtrade
