MARKET COMMENTARY
Natural rubber stays on the positive track in the major overseas market. On Wednesday, TOCOM rubber futures hit a fresh three year high. The most active May rubber futures on the bourse advanced for the fourth successive day supported by expectations of rise in demand from the top natural rubber consumer China. Weak yen and firmer crude oil lend support as well. In the meantime, the commodity edged up in the local market as well. On Tuesday, NMCE rubber futures gained about four per cent and quotes for RSS4 grade rubber in the physical market rose. Positive cues from the major overseas natural rubber market buoyed prices in the local market though subdued demand weighed on.
MARKET NEWS
Crude rubber inventories at Japanese ports stood at 5,969 tonnes as of Nov. 30, down 7.2 percent from the last inventory date, data from the Rubber Trade Association of Japan showed.
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
