MARKET COMMENTARY
Sentiments stayed feeble in the local natural rubber market and on Tuesday the commodity slumped in the futures market, falling nearly two per cent. Downtrend in the major overseas market coupled with poor local demand weighed on even as arrivals stayed scanty despite it being the key season. In the physical market RSS4 was quoted around Rs.112.50 a kg.
In the overseas market on Wednesday, natural rubber is seen continuing downtrend. TOCOM rubber futures hit six year low tracking losses on the SHFE exchange.
MARKET NEWS
Thailand’s cabinet on Tuesday approved measures worth 13 billion baht ($365 million) to help rubber farmers and support falling prices, the director of a state rubber agency said.
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
