Wall Street led most global stock markets during the week after the U.S. ISM PMI rose to 50.9 in June from 49.0 in May, the U.S. non-farm payrolls added 195,000 jobs in June, the Markit Eurozone Composite PMI rose to 48.8 in June from 48.3 in May, and the Japanese central bank’s tankan survey in 2Q13 improved for the first time since September 2011.
As a result, the greenback strengthened against its peers, including the yen and ITRC currencies, throughout the week. That lent support for Tokyo and Shanghai rubber futures to end higher on Friday compared with an earlier Friday. In the meantime, SMR20, SIR20, and Thai concentrated and field latex stayed rather firm during the week but Thai RSS3 and STR20 fell slightly.
On the natural rubber (NR) supply side, a 300,000 ton NR stock under the ITRC measure has been used up. Scattered thundershowers and isolated heavy rain are disrupting rubber tapping in southern Thailand. NR supply in Malaysia and northern Sumatra of Indonesia are expected to decline in some amount in the coming months due mainly to erratic weather. In addition, Muslims begin fasting for a month in early July during the Ramadan. These are likely to lend support for NR prices to improve soon.
Source: IRCo
