MARKET COMMENTARY
Lingering worries over economic growth momentum in China weighed on overall market sentiments. While, the major TOCOM exchange stayed closed for the third consecutive day on Thursday, SHFE rubber futures declined three per cent, stretching previous day’s losses.
In the local market on Wednesday, natural rubber stayed under pressure with RSS4 grade rubber being quoted at its lowest level in about two weeks. On NMCE, it posted losses for the seventh consecutive session. Weak cues from the major overseas market along with expectations of higher imports weighed on.
MARKET NEWS
According to a deputy chairman of the Rubber Holder Co-operatives Federation of Thailand,the production of natural rubber has fallen about 50% from January to April year-on-year due to the drought.
Vietnam’s natural rubber exports could drop 12 percent from a year ago to around 1 million tonnes in 2016, as part of the country’s commitment to cut supply and help stabilise prices, Vietnam Customs said.
Sinochem International Corporation plans to acquire Halcyon Agri Corporation Limited, one of the top five natural rubber companies in the world. If the deal goes well, Sinochem International Corporation will become the world’s largest natural rubber supplier.
India’s natural rubber production fell to its lowest level in about two decades in 2015-16 to 563000 tonnes, a 13 per cent fall from the previous year’s production of 645000 tonnes. Consumption declined as well, by three per cent on YoY basis to 987540 tonnes.
A Ajithkumar, secretary to the Kerala Governor, has been named as the new chair of the Rubber Board.
India Meteorological Department, in its first forecast for 2016 South-West Monsoons, have predicted an ‘above normal’ monsoon rains for this year.
Japan’s weather bureau said that there was a high possibility that a La Nina weather pattern would emerge in summer after El Nino ends.
[embeddoc url=”https://drive.google.com/file/d/0BzrsaGiMYhEkR3lJZlpkWlRyMlU/preview” viewer=”drive”]
Geofin Comtrade
