MARKET COMMENTARY
A mixed trend is being witnessed in natural rubber in the major overseas markets on Tuesday. TOCOM rubber futures inched up while SHFE rubber futures lost over one per cent. However, the broad sentiments stayed weak on lingering worries over demand. Flaring geopolitical tensions weighed on the overall market sentiments as well.
In the Indian market, natural rubber stayed on the bear turf, in the vicinity of the six year lows. RSS4 in the physical market was quoted around Rs.110 a kg in lackluster trades. Low demand and bearishness in the overseas market weighed heavily on prices despite fall in production.
MARKET NEWS
Crude rubber inventories at Japanese ports stood at 11,070 tonnes as of Oct. 31, down 3.6 percent from the last inventory date, data from the Rubber Trade Association of Japan showed
India’s natural rubber output in October declined 10.9 per cent on YoY basis to 49000 tonnes according to the Rubber Board. Imports declined as well by 11.6 per cent to 37691 tonnes while consumption increased 4.9 per cent during the same period.
Rubber inventories in the warehoused monitored by SHFE rose 0.8 per cent to 228612 tonnes according to weekly data from the exchange.
Member countries of the Association of Natural Producing Countries (ANRPC) are eyeing for the formulation of a security fund called the “Rubber Stabilization Fund” is seen to address financial issues among small farmers in the rubber industry and cope with the vitality of global rubber pricing.
Natural rubber production has dropped nearly 1 percent among member nations of the Association of Natural Rubber Producing Countries, and a softening of Chinese and other emerging markets is largely to blame, the ANRPC said.
[embeddoc url=”https://drive.google.com/file/d/0BzrsaGiMYhEkdTNtZGpEamY0Ulk/preview” viewer=”drive”]Geofin Comtrade
