MARKET COMMENTARY
As the week ends, natural rubber in the international market are seen on a greener turf. TOCOM rubber futures extended gains and so were SHFE rubber futures. TOCOM rubber futures extended gains and were probably heading to post gains for the second successive week. Weakening yen lend support. In the meantime, in India, spot as well as futures markets were closed yesterday on account of Christmas. On the day before, the commodity had ended on a firmer note in subdued trades.
MARKET NEWS
⊳ Thai government exploring ways to keep local natural rubber prices above 50-60baht per kg including asking private companies to buy rubber at 60 baht per kg..
⊳ According to Thailand’s Office of Agricultural Economics estimates, natural rubber production from the country is expected to rise 2.6 per cent to 4.43 million tonnes as tapping area rose 5.9 per cent.
⊳ SHFE has notified the launch of Continuous Trading Program for various commodities including natural rubber from 26 Dec onwards. Continuous trading hours for natural rubber are 9:00pm-11:30pm Beijing time from every Monday through Friday. There will be no continuous trading on business day prior to national holiday (excluding weekends.
⊳The Kerala government today approved a formula to help rubber farmers after holding discussions with 12 tyre manufacturing companies in the country. As per the formula, companies would purchase natural rubber at a price fixed by Rubber Board considering the international price of natural rubber plus 20 per cent customs duty and five per cent purchase tax.
⊳Natural rubber production in India in November declined 25 per cent on year on year basis to 64000 tonnes while consumption and imports rose 12 per cent and 19 per cent to 85000 tonnes and 33156 tonnes respectively.
⊳China to raise the cap for rubber import tariff to 1500yuan a tonne from the present 1200 yuan a tonne with effect from January 01.
⊳Indian Rubber Growers Association has urged an urgent intervention of the state and the central government to initiate steps to save rubber growers. In the mean time, the growers association comprising UPASI, APK, IRGA etc have filed a petition under the Provisions of Safeguard before the Directorate of Safeguards, New Delhi to protect the domestic rubber growers from un-controlled and unrestricted imports.
TECHNICAL COMMENTRY
RUBBER Jan NMCE
Even as there exist positive sentiments, it requires clearing the immediate hurdle of 12750 to continue the prevailing up-moves to 12850-13000 ranges. Else range bound moves inside 12750-12200 may be seen.
Source: Geofin Comtrade
