MARKET COMMENTARY
Sentiments stays sanguine in the natural rubber market as the week ends. On Friday, rising for the sixth successive session, TOCOM rubber futures tested its highest level in three and a half years. The most active may rubber futures on the bourse is up by more than one per cent and is probably on the course to post its strongest weekly gains since 1990. Expectations on demand from the top consumer China, weak yen, firmer crude oil prices along with worries over supplies lend firm support.
In the local market on Thursday, the trend was mixed. The commodity continued its uptrend in the spot market, with RSS4 being quoted at its highest level in four months. However, NMCE rubber futures ended in red, probably on profit booking.
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
