MARKET COMMENTARY
Natural rubber in the major overseas market is seen trading in thin ranges as week commences. On TOCOM, the benchmark April rubber futures varied in very narrow ranges in the vicinity of the six year low hit last week on persisting worries on China’s economic health. In the meantime, SHFE rubber futures ticked up in lackluture trades on Monday.
The commodity in the local market was trading sideways to negative last week. RSS4 in the physical market was quoted around Rs.113.50-114.00 a kg while in the futures market it ended down. Amidst poor demand and restricted supply, local self-government election in Kerala, the top natural rubber producing state in India, were weighing on the sentiments as well.
MARKET NEWS
⊳Rubber inventories in the warehoused monitored by SHFE rose 1.3 per cent last week to 227249 tonnes according to the weekly data released from the exchange.
⊳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.
[embeddoc url=”https://drive.google.com/file/d/0BzrsaGiMYhEkNmZJblU4OXU3bDg/preview” viewer=”drive”]Geofin Comtrade
