Asian rubber markets settled higher last week amid the lower than expected decline in the U.S.unemployment rate at 7.5 percent in April 2013, touching the lowest unemployment rate level in the last four years. In addition, the weakening of yen against the dollar also supported rubber prices at a certain level last week. Moreover, high speculative buying on rubber futures tended to push rubber prices up as well.
IRCo’s DCP rose from 263.17 US cents/kg on Monday to 275.90 US cents/kg on Friday, or up 12.73 US cents/kg (4.84%). Thai RSS-3 also settled higher at 304.47 US cent/kg on Friday from its settlement price at 300.20 US cents/kg on Tuesday (Monday was public holiday inThailand), or gained 4.27 US cents/kg or 1.42%. Meanwhile, Thailand STR-20 also climbed to 259.08 US cents/kg on Friday, or 5.37 US cents/kg (2.12%) from its settlement price at 253.71 US cents/kg on Tuesday. Moreover, Malaysia SMR20 as well as Indonesia SIR20 also improved significantly during the week. Indonesia SIR20 rose to 268.00 US cents/kg on Friday, or 14.00 US cents/kg (5.51%) higher than its settlement price at 254.00 US cents/kg on Monday. Similarly, Malaysia SMR20 also settled higher at 273.00 US cents/kg on Friday, or 9.00 US cents/kg (3.41%) higher than its settlement price at 264.00 US cents/kg on Monday.
The benchmark rubber contract for October delivery on TOCOM settled significantly higher at 293.60 yen/kg on Friday, or 22.90 yen/kg (8.46%) higher than its settlement price at 270.70 yen/kg on Monday. In addition, the Shanghai Futures Commodity Exchange for September delivery also finished the week higher at 20,590.00 Yuan/ton, or 500.00 Yuan/ton or 2.49% higher than its settlement price at 20,090.00 Yuan/ton on Monday. Furthermore, AFET RSS-3 for December delivery also rose significantly to 87.00 THB/kg on Friday, or a significant gain of 5.05 THB/kg, or 6.16% higher than its settlement price at 81.95THB/kg on Monday.
NR supply in the coming week is expected to be tight as rubber plantations in northern hemisphere of Indonesia and Malaysia, as well as southern Thailand are in a mid dry wintering season. Meanwhile, lack of rubber tappers in Indonesia will negatively affects rubber taping intensity, and it could lead to significant reduction in rubber production in the coming weeks.
Source: IRCo
