MARKET COMMENTARY
⊳ As the week’s session culminated, a mixed trend is being witnessed in the major overseas market. Despite steep plunges in crude oil prices, TOCOM rubber futures is seen swinging between positive and negative turfs. The benchmark May rubber futures has declined more than one per cent earlier today before bouncing back. Weakening yen along with rise in Japanese industrial production probably lend support.
⊳RSS4 stretched losses in the local natural rubber market on Thursday. Weakness in the major overseas market coupled with jaded demand from the tyre sector continued to weigh on the overall market sentiments. However, losses were probably restricted owing to limited arrivals to the market. However, on NMCE, the commodity culminated the session rather flat.
MARKET NEWS
⊳ Crude oil tumbles to its lowest level in four years.
⊳ Thai officials have outlined 16 measures to help rubber farmers facing hardship, including plans to cooperate with rubber producing countries in the region to boost global market prices.
⊳ Thailand’s natural rubber exports declined 11 per cent to 291641 tonnes in October according to the nation’s Ministry of Commerce.
⊳ Vietnam’s Ministry of Agriculture and Rural Development expects rubber exports in November to be at 113000 tonnes. In October, the nation shipped 147000 tonnes compared to 119000 tonnes exported during the same period last year.
⊳ Thai Farm Ministry will form a joint committee with rubber farmers to discuss the industry’s short and long- term problems according to Amnuay Patise, deputy minister.
⊳ China tire companies urges the government to take measures against anti-dumping and countervailing duties imposed on tire imported from China by the US.
⊳ The United States is set to slap duties on imports of tires from China after the Department of Commerce found that the tires are produced using unfair government subsidies.
⊳The International Rubber Tripartite Council has decided to set up a regional rubber market in 18 month to stabilise natural rubber prices. In the Council meeting, it was also decided to cut exports from next year to control supply and bolster prices.
TECHNICAL COMMENTRY
RUBBER Dec NMCE
As long as support at 11400 remains undisturbed, pullbacks cannot be ruled out and such moves are likely to face stiff resistance around 11800 ranges which it requires to breach for further upsides.
Source: Geofin Comtrade
