MARKET COMMENTARY
A mixed trend is being witnessed in the major overseas natural rubber market on Friday. TOCOM rubber futures are seen rising after declining last day, while SHFE rubber futures slipped. The benchmark May rubber futures on the TOCOM exchange gained more than one per cent probably on firmer crude oil prices and weak yen.
In the Indian market on Thursday, natural rubber stayed steady to negative. In the physical market, RSS4 grade rubber was quoted around Rs.129 a kg. However, on NMCE it inched down, falling more than one per cent. Even as the underlying sentiments stayed positive, weakness seen in the major overseas market probably weighed on.
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According to the Association of Natural Rubber Producing Countries global natural rubber prices are likely to stay firm in short term due to stronger crude oil prices and as consumption growth outpaces production. The association said that consumption among its member countries rose 4.3 per cent to 7.387 million tonnes in Jan-Nov while production increased only 0.4 per cent.
The Rubber Board informed that production of natural rubber (NR) in the country showed an increase during the period from April 2016 to October 2016. It has recorded an increase of 10.94 per cent as compared to the production in the same period during the last year. Production during the month of October 2016 alone shows an increase of 15.4 per cent as compared to last year. If this trend continues, production of NR during the fiscal will reach the anticipated 6.54 lakh tonne.
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