MARKET COMMENTARY
Sentiments in the natural rubber market stay upbeat. On Tuesday, TOCOM rubber futures advanced to hit its highest level in about three years. Amidst surge in crude oil prices and weak yen, bullish moves on SHFE rubber futures, worries over Thai natural rubber production and upbeat economic indicators from the top natural rubber consumer China may have bolstered the sentiments.
In the local market on Monday, natural rubber in the spot market moved on firmer note in subdued trades, while futures market stayed closed on account of Id-E-Milad.
MARKET NEWS
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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Geofin Comtrade
