MARKET COMMENTARY
On Thursday, positive moves are being witnessed in the major overseas natural rubber market. Overnight gains in crude oil coupled with firm equities lifted rubber futures on the TOCOM exchange. Bargain hunting may too have emerged after it had declined to six year low the other day. SHFE rubber futures were seen rising as well.
In the local market, natural rubber prices ruled rather flat on Wednesday. RSS4 in the physical market was hovering near Rs.113.50 a kg while on NMCE, rubber futures varied in thin ranges.
MARKET NEWS
⊳TOCOM October rubber futures expired with 101 lots being delivered compared to 645 lots being delivered a month earlier
⊳Japan’s crude rubber stocks totaled 11,484 metric tons as of October 20, up 0.4% from 11,443 tons as of October 10, data from the Rubber Trade Association of Japan showed.
⊳Bridgestone Corporation announced that it successfully built passenger tires with 100 per cent of its natural rubber-containing components derived from guayule, a desert shrub that grows in arid region.
⊳Thailand’s Natural Rubber Policy Committee said the government will not provide a cash subsidy for struggling rubber famers, but will instead promote local consumption of rubber to boost price.
⊳According to the Association of Natural Rubber Producing Countries, production from the key natural rubber producing countries declined 0.9 per cent (YoY) for the first eight months of this year.
⊳Kerala government has modified some terms of subsidy scheme for rubber farmers. The government dropped Aadhaar as mandatory requirement for registration while extending the scheme to latex as well from October. Farmers will receive the difference between Rs.142 and the price of latex as fixed by the Rubber Board.
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Geofin Comtrade
