MARKET COMMENTARY
⊳Natural rubber culminated the previous week’s session on a positive note. NMCE rubber futures advanced for the second successive week to test its highest level since early September this year. Quotes for RSS4 in the physical market rose as well in holiday thinned trades. While the Rubber Board rates were at Rs.130 a kg, in the spot market it was hovering near Rs.127-128 a kg. Overall market sentiments were largely upbeat following the new rubber purchase formula announced by the government though some apprehensions still prevailed in the market over its implementation and success. Rising natural rubber prices in the international market lend support too.
⊳ In the overseas market, as the week’s session commences, natural rubber is seen on a greener turf. TOCOM, SHFE as well as AFET rubber futures are seen rising on Monday. Unfavorable weather in Thailand and Malaysia, and weakening yen lifted prices.
MARKET NEWS
⊳Rubber inventories in the warehouses monitored by SHFE rose 0.8 per cent 154086 tonnes last week.
⊳ According to Indonesian Rubber Association, natural rubber exports from the country is likely stay unchanged from the current levels at 2.5 million tonnes in 2015
⊳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.
TECHNICAL COMMENTRY
RUBBER Jan NMCE
It is mandatory to clear 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
