Mixed trend in spot rubber prices
Kottayam: Physical rubber prices witnessed a mixed trend on Thursday. Sheet rubber opened better at Rs 121 a kg but it shed the gains on late trades following the declines in domestic futures on NMCE.
Most of the grades finished higher as there was no selling pressure in the main marketing centres even at higher levels. Major manufacturers were on the sidelines, expecting the market to move down further during the weekend sessions.
Futures weak
RSS 4 weakened with the December futures slipping to Rs 121.50 (123.45), January to Rs 123.41 (125.76) and February to Rs 125.50 (127.69) a kg on National Multi Commodity Exchange (NMCE). RSS 3 slipped with the December futures sliding to ¥243.3 (¥244.2) (Rs 130.35), while the January futures moved up to ¥245 (¥243.5) and February to ¥246.4 (¥245.4) a kg during the day session on Tokyo Commodity Exchange (TOCOM). RSS 3 closed firm at Rs 125.43 (123.85) a kg at Bangkok. The grade improved to Rs 125.76 (124.05) a kg on Singapore Commodity Exchange (SICOM). (BL)
http://www.thehindubusinessline.com/2009/11/27/stories/2009112751261600.htm
Rubber Producers End Export Curbs as Demand Recovers (Update1)
Nov. 27 (Bloomberg) -- Thailand, Indonesia and Malaysia, the world’s biggest rubber producers, ended curbs on exports as the global economic recovery stokes demand and prices of the commodity used in tires and gloves, a producers’ group said.
“Prices have recovered and the market has improved while supply is tight and stock is low,” Abdul Rasip Latiff, chief executive officer of the International Rubber Consortium Ltd., said today. The decision was made last week at a meeting of the International Tripartite Rubber Council, he said.
Natural rubber prices have jumped 81 percent this year on speculation rising crude oil and growth in China, the biggest consumer, may push up demand. China’s economy grew 8.9 percent in the third quarter, the fastest pace in a year, and oil is up 70 percent this year, making rubber more attractive than rival products made from petroleum.
“We had the program to improve the price and we’ve met our objective,” Abdul Rasip said in a phone interview.
Rubber for May delivery fell as much as 9.1 yen to 244 yen per kilogram ($2,838 a ton) on the Tokyo Commodity Exchange. It traded at 246.1 yen at 11.55 a.m. Bangkok time. The price slid for the first time this week as a rally by the Japanese currency weakened the appeal of yen-denominated contracts.
Thailand, Indonesia and Malaysia, which harvest about 7 million tons a year, pared exports by 690,000 tons in the January-July period, approaching the 700,000 ton target set in December to combat a 56 percent slump in prices last year.
Heavy rain in Thailand’s southern provinces, the key area for rubber plantation, may hurt production, Abdul Rasip said.
“Supply will be very tight until the rest of the year and stocks will be very low because of rain in southern Thailand and Malaysia,” he said. “The outlook is good.”
Friday, November 27, 2009
Thursday, November 26, 2009
Sheet rubber touches Rs 120 a kg
Sheet rubber touches Rs 120 a kg
Kottayam: Spot rubber continued to explore further highs on Wednesday. According to sources, the market moved up in tune with the gains in the domestic and international futures amidst incessant rains.
Sheet rubber improved to Rs 120 (Rs 118) a kg mainly on covering purchases. Most of the dealers and growers seemed to be waiting for even higher levels to sell their stocks and the current target of the market was projected at Rs 130 a kg for RSS 4.
Futures gain
RSS 4 flared up with December futures rising to Rs 123.50 (120.17) and January to Rs 125.72 (122.46) a kg on National Multi Commodity Exchange (NMCE). RSS 3 recovered with the December futures rising to ¥244.2 (¥242.9) (Rs 128.75), January to ¥243.5 (¥242) and February to ¥245.4 (¥243.8 a kg during the day session on Tokyo Commodity Exchange (TOCOM). The December futures closed at ¥242.8, January at ¥243.4 and February at ¥245.8 a kg during the night session. RSS 3 (spot) improved marginally to Rs 123.85 (123.65) a kg at Bangkok. But it slipped to Rs 124.05 (124.65) a kg on Singapore Commodity Exchange (SICOM). (BL)
http://www.thehindubusinessline.com/2009/11/26/stories/2009112651381600.htm
Bull run in commodities may continue
Mumbai: Spurt in prices to be driven by dollar weakness, rise in demand and low supplies. The gobal bull run in commodities is likely to continue through next year due to dollar weakness, supply restraint and, eventually, a pick-up in demand.
After plummeting in the fourth quarter of the last calendar year, commodities have performed well this year, with prices having surged by 140 per cent on supply constraints and demand. The Dow Jones UBS index is up 15 per cent over a year on Wednesday, led by a staggering 64 per cent lift in industrial metals’ prices, the latest report by Standard Chartered said. (BS)
http://www.business-standard.com/india/news/bull-run-in-commodities-may-continue/377613/
Kottayam: Spot rubber continued to explore further highs on Wednesday. According to sources, the market moved up in tune with the gains in the domestic and international futures amidst incessant rains.
Sheet rubber improved to Rs 120 (Rs 118) a kg mainly on covering purchases. Most of the dealers and growers seemed to be waiting for even higher levels to sell their stocks and the current target of the market was projected at Rs 130 a kg for RSS 4.
Futures gain
RSS 4 flared up with December futures rising to Rs 123.50 (120.17) and January to Rs 125.72 (122.46) a kg on National Multi Commodity Exchange (NMCE). RSS 3 recovered with the December futures rising to ¥244.2 (¥242.9) (Rs 128.75), January to ¥243.5 (¥242) and February to ¥245.4 (¥243.8 a kg during the day session on Tokyo Commodity Exchange (TOCOM). The December futures closed at ¥242.8, January at ¥243.4 and February at ¥245.8 a kg during the night session. RSS 3 (spot) improved marginally to Rs 123.85 (123.65) a kg at Bangkok. But it slipped to Rs 124.05 (124.65) a kg on Singapore Commodity Exchange (SICOM). (BL)
http://www.thehindubusinessline.com/2009/11/26/stories/2009112651381600.htm
Bull run in commodities may continue
Mumbai: Spurt in prices to be driven by dollar weakness, rise in demand and low supplies. The gobal bull run in commodities is likely to continue through next year due to dollar weakness, supply restraint and, eventually, a pick-up in demand.
After plummeting in the fourth quarter of the last calendar year, commodities have performed well this year, with prices having surged by 140 per cent on supply constraints and demand. The Dow Jones UBS index is up 15 per cent over a year on Wednesday, led by a staggering 64 per cent lift in industrial metals’ prices, the latest report by Standard Chartered said. (BS)
http://www.business-standard.com/india/news/bull-run-in-commodities-may-continue/377613/
Discussion on rubber prices-a study by atish jain
Auto sector growth to push up demand for rubber
Published on Wed, Nov 25, 2009 at 14:53 Updated at Wed, Nov 25, 2009 at 15:00 Source : Business Line
The progress achieved by the global automobile industry during the second lap of the current year gave a fresh impetus to the demand for rubber and it continues to scale further highs.
The weather changes due to global warming in most of the rubber producing countries have affected production. According to the assessment of the Association of Natural Rubber Producing Countries (ANRPC), rubber production will lower by 6 per cent this year.
Major consumers
China is the major rubber consumer and requires maximum rubber for its use now, since its stock position is very low. The US and the European countries are procuring large quantities of rubber. The industrial progress in Japan has also enhanced consumption in that country.
India, which overtook Japan in rubber consumption, made a record import during the current fiscal. The untimely rains and floods that followed reduced the availability of rubber from Thailand and interrupted the movement of rubber there. Once the rains subside, winter would commence.
According to weather forecasts, winter will be severe this year. This will also adversely affect rubber production.
It is estimated that annual rubber production in Thailand would be only within 2.5 million tonnes. But, in 2008, the production there was 3.1 million tonnes. In Malaysia too,tapping has been suspended due to heavy rains. Large-scale cutting down of trees intended for replanting has worsened the situation. The production loss of Malaysia during January-September was 24 per cent. Severe winter in Indonesia brought down the availability of rubber to very lower levels.
In India also, weather has curtailed production. Rubber production during the first seven months of the current fiscal was down by 9.4 per cent and reached 435,125 tonnes. Last year, the production during the same period was 480,230 tonnes. The rubber consumption shot up by 3 per cent and touched 536,100 tonnes. In the international market, where the price was ruling low during the early months, large- scale import of rubber by India brought relief to the deadlock in the market. India imported 126,472 tonnes during April-October.
Compared with the former years, the increase in imports was 233 per cent. By March next, the imports would reach 1.5 lakh tonnes. The export from the country touched almost the bottom lines.
During the April-October period, a consignment of only 3,859 tonnes was exported. But, in the previous year, at the same time, the export was 34,000 tonnes.
At the beginning of the current fiscal, the market commenced with a price of Rs 83.50 a kg for RSS 4 grade. The price has now shot up to Rs 118 a kg. The stock position at the end of October was 2.19 lakh tonnes. The stock last year at the same time was only 1.5 lakh tonnes.
The arrival of large quantities of foreign rubber to the domestic market could, in fact, help avoid a crisis.
Auto industry growth
The severe drought at the beginning of the year and the subsequent heavy rains all over in Kerala caused a setback to rubber production.
The growth achieved by the automobile industry was appreciable and it created similar repercussions in the tyre producing sector also. Some foreign tyre companies are desirous of investing in India to start new ventures. This will strengthen the demand for natural rubber.
While in the domestic market, RSS 4 is traded at Rs 118 a kg, the same grade is priced at Rs 123.56 a kg at Singapore Commodity Exchange (SICOM).
Availability reduced
Though September-December is a high productive phase for rubber, this year, it was not so favourable till the end of November. The availability was reduced due to climaticvariations. In November-December, the latex flow is very high. But heavy rains succeeded in disrupting tapping. Now, rain has almost receded and the days ahead would witness intense tapping and as a result of which, the movement of rubber to the marketing centres would also gather momentum.
But, even if arrival enhances the confidence that the possibility of a price crash is very remote gives more strength to the bullish trend prevailing in the market. However, prices would continue to rule above the Rs 100 mark in the coming days as is evident from the favourable wind blowing at present with prices touching Rs 118 a kg for sheet rubber.
Why global natural rubber prices are rising?
KOCHI (Commodity Online): Global recovery hopes, the crude oil rally and fall in output forecasted in key producing nations has helped sustain natural rubber prices at reasonably high levels in recent times. Production in Thailand, the world's largest producer and exporter of rubber is expected to drop this year on heavy rains disrupting plantation work in Southern regions. With the result RSS3 grade prices have risen to $2.46 per kg. News reports quoting Thailand Agriculture Ministry suggested that Thailand's output is expected to fall from 3.1 mn tonnes last year to below 2.5 mn tonnes in 2009. The major boost to rubber has come from the postive develoments in China whose industrial production and retail sales have zoomed by more than 16% as on October on an annualised basis. China being the largest consumer of natural rubber could boost demand in the days ahead. In India, there has been a demand supply mismatch as production has droped by 9.5% in the first seven months of the current financial year (2009-10) while consumption has risen by 3%. According to Rubber Board, production fell to 435,125 tonnes in April-October period, compared to 480,230 tonnes in corresponding period last year. Due to prevailing higher prices in international markets, Natural rubber (NR) imports declined 50 per cent in October compared with the same month last year. The imports fell to 8,574 tonnes against 16,010 tonnes in October last year. Consum;piton has edged up to 536,100 tonnes.India is the fourth largest producer of the commodity after Thailand, Indonesia and Malaysia. Till September, imports were on a rise due to a sharp increase in the local prices of the commodity . The international prices of RSS-3 grade were lower than the Indian prices, the difference being around Rs 17-18 a kg. This encouraged importers to utilise the price advantage. The rubber-based industry, especially tyre makers, also reaped the benefits of the global price advantage, leading to a rise in imports in the first half. This sharp rise in imports led to an increase in the rubber stock in India. By the end of October, the country possessed 219,000 tonnes of rubber as against 150,000 tonnes in the same period last year. At present, the price situation is in a reverse mode as the international prices are higher by Rs 7-8 a kg compared with the local prices. So, the imports have become unviable.India's tappable area has risen but fall in productivity has hurt the production prospects thus putting the prices in a stable to bullish mode, analysts said. So far rubber growers have had a remunerative farm gate price this year as futures and spot prices have ruled above Rs 100. According to Association of Natural Rubber Producing Countries, 2009 has witnessed a falling trend in global supply upto September.Total output in the seven countries accounting 93% of the global supply fell 5.1% in the 12 months to September 2009 as compared to the year ended December 2008. The output fall in the 12 months to August 2009 was 3.7% only.Malaysia has so far witnessed the highest drop in output at 19.3% while China has witnessed a fall of 17.9%. Malaysia Farm Ministry had expressed the hope that shortfall so far would be compensated by 26% expected growth in production in the September-November period. The fact that many countries have undertaken replanting replacing old trees during the 2003-09 period has also affected production levels which will be bridged only in the coming year. International Rubber Study Group (IRSG) in a report released in October points out that there has been a surge in new plantings in 11 Asian countries during 2005-08 period. These countries constitute 92% of total global output. The fact that tapping becomes after after 5th and 7th year of planting gives rise to the possibility that supply will surge strong enough to beat the present bull phase. In 2008 total new planting is estimated to have reached around six times the level of 2000.The consequences for total area are significant: more than one million hectares have been added during the period 2005-2008. Supply potential will show significant increases: the levels in 2015 and 2020 are expected to be around 30% and around 50% higher than in 2008, respectively.
Published on Wed, Nov 25, 2009 at 14:53 Updated at Wed, Nov 25, 2009 at 15:00 Source : Business Line
The progress achieved by the global automobile industry during the second lap of the current year gave a fresh impetus to the demand for rubber and it continues to scale further highs.
The weather changes due to global warming in most of the rubber producing countries have affected production. According to the assessment of the Association of Natural Rubber Producing Countries (ANRPC), rubber production will lower by 6 per cent this year.
Major consumers
China is the major rubber consumer and requires maximum rubber for its use now, since its stock position is very low. The US and the European countries are procuring large quantities of rubber. The industrial progress in Japan has also enhanced consumption in that country.
India, which overtook Japan in rubber consumption, made a record import during the current fiscal. The untimely rains and floods that followed reduced the availability of rubber from Thailand and interrupted the movement of rubber there. Once the rains subside, winter would commence.
According to weather forecasts, winter will be severe this year. This will also adversely affect rubber production.
It is estimated that annual rubber production in Thailand would be only within 2.5 million tonnes. But, in 2008, the production there was 3.1 million tonnes. In Malaysia too,tapping has been suspended due to heavy rains. Large-scale cutting down of trees intended for replanting has worsened the situation. The production loss of Malaysia during January-September was 24 per cent. Severe winter in Indonesia brought down the availability of rubber to very lower levels.
In India also, weather has curtailed production. Rubber production during the first seven months of the current fiscal was down by 9.4 per cent and reached 435,125 tonnes. Last year, the production during the same period was 480,230 tonnes. The rubber consumption shot up by 3 per cent and touched 536,100 tonnes. In the international market, where the price was ruling low during the early months, large- scale import of rubber by India brought relief to the deadlock in the market. India imported 126,472 tonnes during April-October.
Compared with the former years, the increase in imports was 233 per cent. By March next, the imports would reach 1.5 lakh tonnes. The export from the country touched almost the bottom lines.
During the April-October period, a consignment of only 3,859 tonnes was exported. But, in the previous year, at the same time, the export was 34,000 tonnes.
At the beginning of the current fiscal, the market commenced with a price of Rs 83.50 a kg for RSS 4 grade. The price has now shot up to Rs 118 a kg. The stock position at the end of October was 2.19 lakh tonnes. The stock last year at the same time was only 1.5 lakh tonnes.
The arrival of large quantities of foreign rubber to the domestic market could, in fact, help avoid a crisis.
Auto industry growth
The severe drought at the beginning of the year and the subsequent heavy rains all over in Kerala caused a setback to rubber production.
The growth achieved by the automobile industry was appreciable and it created similar repercussions in the tyre producing sector also. Some foreign tyre companies are desirous of investing in India to start new ventures. This will strengthen the demand for natural rubber.
While in the domestic market, RSS 4 is traded at Rs 118 a kg, the same grade is priced at Rs 123.56 a kg at Singapore Commodity Exchange (SICOM).
Availability reduced
Though September-December is a high productive phase for rubber, this year, it was not so favourable till the end of November. The availability was reduced due to climaticvariations. In November-December, the latex flow is very high. But heavy rains succeeded in disrupting tapping. Now, rain has almost receded and the days ahead would witness intense tapping and as a result of which, the movement of rubber to the marketing centres would also gather momentum.
But, even if arrival enhances the confidence that the possibility of a price crash is very remote gives more strength to the bullish trend prevailing in the market. However, prices would continue to rule above the Rs 100 mark in the coming days as is evident from the favourable wind blowing at present with prices touching Rs 118 a kg for sheet rubber.
Why global natural rubber prices are rising?
KOCHI (Commodity Online): Global recovery hopes, the crude oil rally and fall in output forecasted in key producing nations has helped sustain natural rubber prices at reasonably high levels in recent times. Production in Thailand, the world's largest producer and exporter of rubber is expected to drop this year on heavy rains disrupting plantation work in Southern regions. With the result RSS3 grade prices have risen to $2.46 per kg. News reports quoting Thailand Agriculture Ministry suggested that Thailand's output is expected to fall from 3.1 mn tonnes last year to below 2.5 mn tonnes in 2009. The major boost to rubber has come from the postive develoments in China whose industrial production and retail sales have zoomed by more than 16% as on October on an annualised basis. China being the largest consumer of natural rubber could boost demand in the days ahead. In India, there has been a demand supply mismatch as production has droped by 9.5% in the first seven months of the current financial year (2009-10) while consumption has risen by 3%. According to Rubber Board, production fell to 435,125 tonnes in April-October period, compared to 480,230 tonnes in corresponding period last year. Due to prevailing higher prices in international markets, Natural rubber (NR) imports declined 50 per cent in October compared with the same month last year. The imports fell to 8,574 tonnes against 16,010 tonnes in October last year. Consum;piton has edged up to 536,100 tonnes.India is the fourth largest producer of the commodity after Thailand, Indonesia and Malaysia. Till September, imports were on a rise due to a sharp increase in the local prices of the commodity . The international prices of RSS-3 grade were lower than the Indian prices, the difference being around Rs 17-18 a kg. This encouraged importers to utilise the price advantage. The rubber-based industry, especially tyre makers, also reaped the benefits of the global price advantage, leading to a rise in imports in the first half. This sharp rise in imports led to an increase in the rubber stock in India. By the end of October, the country possessed 219,000 tonnes of rubber as against 150,000 tonnes in the same period last year. At present, the price situation is in a reverse mode as the international prices are higher by Rs 7-8 a kg compared with the local prices. So, the imports have become unviable.India's tappable area has risen but fall in productivity has hurt the production prospects thus putting the prices in a stable to bullish mode, analysts said. So far rubber growers have had a remunerative farm gate price this year as futures and spot prices have ruled above Rs 100. According to Association of Natural Rubber Producing Countries, 2009 has witnessed a falling trend in global supply upto September.Total output in the seven countries accounting 93% of the global supply fell 5.1% in the 12 months to September 2009 as compared to the year ended December 2008. The output fall in the 12 months to August 2009 was 3.7% only.Malaysia has so far witnessed the highest drop in output at 19.3% while China has witnessed a fall of 17.9%. Malaysia Farm Ministry had expressed the hope that shortfall so far would be compensated by 26% expected growth in production in the September-November period. The fact that many countries have undertaken replanting replacing old trees during the 2003-09 period has also affected production levels which will be bridged only in the coming year. International Rubber Study Group (IRSG) in a report released in October points out that there has been a surge in new plantings in 11 Asian countries during 2005-08 period. These countries constitute 92% of total global output. The fact that tapping becomes after after 5th and 7th year of planting gives rise to the possibility that supply will surge strong enough to beat the present bull phase. In 2008 total new planting is estimated to have reached around six times the level of 2000.The consequences for total area are significant: more than one million hectares have been added during the period 2005-2008. Supply potential will show significant increases: the levels in 2015 and 2020 are expected to be around 30% and around 50% higher than in 2008, respectively.
Wednesday, November 25, 2009
Auto sector growth to push up demand for rubber
Auto sector growth to push up demand for rubber
Kottayam: The progress achieved by the global automobile industry during the second lap of the current year gave a fresh impetus to the demand for rubber and it continues to scale further highs.The weather changes due to global warming in most of the rubber producing countries have affected production. According to the assessment of the Association of Natural Rubber Producing Countries (ANRPC), rubber production will lower by 6 per cent this year.Major consumersChina is the major rubber consumer and requires maximum rubber for its use now, since its stock position is very low. The US and the European countries are procuring large quantities of rubber. The industrial progress in Japan has also enhanced consumption in that country.India, which overtook Japan in rubber consumption, made a record import during the current fiscal. The untimely rains and floods that followed reduced the availability of rubber from Thailand and interrupted the movement of rubber there. Once the rains subside, winter would commence.According to weather forecasts, winter will be severe this year. This will also adversely affect rubber production. (BL)http://www.thehindubusinessline.com/2009/11/25/stories/2009112550741600.htm
Kottayam: The progress achieved by the global automobile industry during the second lap of the current year gave a fresh impetus to the demand for rubber and it continues to scale further highs.The weather changes due to global warming in most of the rubber producing countries have affected production. According to the assessment of the Association of Natural Rubber Producing Countries (ANRPC), rubber production will lower by 6 per cent this year.Major consumersChina is the major rubber consumer and requires maximum rubber for its use now, since its stock position is very low. The US and the European countries are procuring large quantities of rubber. The industrial progress in Japan has also enhanced consumption in that country.India, which overtook Japan in rubber consumption, made a record import during the current fiscal. The untimely rains and floods that followed reduced the availability of rubber from Thailand and interrupted the movement of rubber there. Once the rains subside, winter would commence.According to weather forecasts, winter will be severe this year. This will also adversely affect rubber production. (BL)http://www.thehindubusinessline.com/2009/11/25/stories/2009112550741600.htm
UPTREND in RUBBER PRICES
Rubber rises on fresh buying
Kottayam: The physical rubber market improved further on Tuesday. The prices moved up on fresh buying and short covering catalysed by the sharp gains in the international indices.
Declines in the domestic futures put pressure on sheet rubber on late trades but it managed to finish higher at Rs 118 (117) a kg amidst low supplies.
Futures decline
RSS 4 declined at its December futures to Rs 120.20 (121.46), January to Rs 122.48 (123.90), February to Rs 124.30 (126.05) and March to Rs 126.14 (127.14) a kg on National Multi Commodity Exchange (NMCE). RSS 3 bounced back at its November futures to ¥238 (¥230) (Rs 124.62), December to ¥242.9 (¥237), January to ¥242 (¥237), February to ¥243.8 (¥239.6), March to ¥245.6 (¥241.5) and April to ¥247.5 (¥243.4) a kg during the day session on Tokyo Commodity Exchange (TOCOM).The December futures closed at ¥243.2, January at ¥240.3, February at ¥243, March at ¥244.6 and April at ¥246.6n a kg on late trades. RSS 3 closed higher at Rs 124.65 (122.91) a kg on Singapore Commodity Exchange (SICOM). The grade flared up to Rs 123.65 (120.73) a kg at Bangkok. (BL)
http://www.thehindubusinessline.com/2009/11/25/stories/2009112550751600.htm
Auto sector growth to push up demand for rubber
Kottayam: The progress achieved by the global automobile industry during the second lap of the current year gave a fresh impetus to the demand for rubber and it continues to scale further highs.
The weather changes due to global warming in most of the rubber producing countries have affected production. According to the assessment of the Association of Natural Rubber Producing Countries (ANRPC), rubber production will lower by 6 per cent this year.
Major consumers
China is the major rubber consumer and requires maximum rubber for its use now, since its stock position is very low. The US and the European countries are procuring large quantities of rubber. The industrial progress in Japan has also enhanced consumption in that country.
India, which overtook Japan in rubber consumption, made a record import during the current fiscal. The untimely rains and floods that followed reduced the availability of rubber from Thailand and interrupted the movement of rubber there. Once the rains subside, winter would commence.
According to weather forecasts, winter will be severe this year. This will also adversely affect rubber production. (BL)
http://www.thehindubusinessline.com/2009/11/25/stories/2009112550741600.htm
Kottayam: The physical rubber market improved further on Tuesday. The prices moved up on fresh buying and short covering catalysed by the sharp gains in the international indices.
Declines in the domestic futures put pressure on sheet rubber on late trades but it managed to finish higher at Rs 118 (117) a kg amidst low supplies.
Futures decline
RSS 4 declined at its December futures to Rs 120.20 (121.46), January to Rs 122.48 (123.90), February to Rs 124.30 (126.05) and March to Rs 126.14 (127.14) a kg on National Multi Commodity Exchange (NMCE). RSS 3 bounced back at its November futures to ¥238 (¥230) (Rs 124.62), December to ¥242.9 (¥237), January to ¥242 (¥237), February to ¥243.8 (¥239.6), March to ¥245.6 (¥241.5) and April to ¥247.5 (¥243.4) a kg during the day session on Tokyo Commodity Exchange (TOCOM).The December futures closed at ¥243.2, January at ¥240.3, February at ¥243, March at ¥244.6 and April at ¥246.6n a kg on late trades. RSS 3 closed higher at Rs 124.65 (122.91) a kg on Singapore Commodity Exchange (SICOM). The grade flared up to Rs 123.65 (120.73) a kg at Bangkok. (BL)
http://www.thehindubusinessline.com/2009/11/25/stories/2009112550751600.htm
Auto sector growth to push up demand for rubber
Kottayam: The progress achieved by the global automobile industry during the second lap of the current year gave a fresh impetus to the demand for rubber and it continues to scale further highs.
The weather changes due to global warming in most of the rubber producing countries have affected production. According to the assessment of the Association of Natural Rubber Producing Countries (ANRPC), rubber production will lower by 6 per cent this year.
Major consumers
China is the major rubber consumer and requires maximum rubber for its use now, since its stock position is very low. The US and the European countries are procuring large quantities of rubber. The industrial progress in Japan has also enhanced consumption in that country.
India, which overtook Japan in rubber consumption, made a record import during the current fiscal. The untimely rains and floods that followed reduced the availability of rubber from Thailand and interrupted the movement of rubber there. Once the rains subside, winter would commence.
According to weather forecasts, winter will be severe this year. This will also adversely affect rubber production. (BL)
http://www.thehindubusinessline.com/2009/11/25/stories/2009112550741600.htm
Tuesday, November 24, 2009
Rubber Climbs to 14-Month High as Floods Curb Thai Production
Rubber Climbs to 14-Month High as Floods Curb Thai Production
Nov. 24 (Bloomberg) -- Rubber rallied to the highest level in almost 14 months on concern that flooding in Thailand, the world’s largest producer, will reduce supply.
Futures on the Tokyo Commodity Exchange gained as much as 2.7 percent to 250 yen a kilogram ($2,804 a metric ton), the highest level since Oct. 2, 2008. Flooding hit four provinces in southern Thailand after heavy rain started falling in the region on Nov. 19, the Royal Irrigation Department said yesterday on its Web site.
“Lower supply from Thailand due to floods in southern provinces is a bullish factor driving the prices higher,” Navarat Kaewpratarn, senior marketing official at Future Agri Trade Co., said by phone from Bangkok.
April-delivery rubber rallied 2.4 percent to 249.2 yen a kilogram on the Tokyo Commodity Exchange at 12.24 p.m. Tokyo time. The bourse was closed yesterday for a holiday in Japan.
Rubber plantations in the four provinces affected by flooding accounted for about 20 percent of the country’s total plantation area of about 2.7 million hectares (6.7 million acres), according to the Rubber Research Institute of Thailand.
Output from Thailand may decline “about 10 percent” this year to between 2.7 million and 2.8 million tons as heavy rain disrupts production, Prapas Euanontat, the Thai Rubber Association’s secretary-general, said Nov. 16. The nation produced 3.1 million tons in 2008.
Rubber, used to make tires, also advanced after gold touched an all-time high of $1,174 an ounce yesterday as the dollar fell as much as 0.9 percent against the euro, boosting demand for commodities as alternative assets.
March-delivery rubber on the Shanghai Futures Exchange gained 0.3 percent to 21,900 yuan ($3,207) a ton at the 11.30 a.m. local time break.
Natural rubber stockpiles monitored by the bourse rose 4,130 tons to 133,997 tons, the exchange said on Nov. 20, the highest level since November 2004.
Nov. 24 (Bloomberg) -- Rubber rallied to the highest level in almost 14 months on concern that flooding in Thailand, the world’s largest producer, will reduce supply.
Futures on the Tokyo Commodity Exchange gained as much as 2.7 percent to 250 yen a kilogram ($2,804 a metric ton), the highest level since Oct. 2, 2008. Flooding hit four provinces in southern Thailand after heavy rain started falling in the region on Nov. 19, the Royal Irrigation Department said yesterday on its Web site.
“Lower supply from Thailand due to floods in southern provinces is a bullish factor driving the prices higher,” Navarat Kaewpratarn, senior marketing official at Future Agri Trade Co., said by phone from Bangkok.
April-delivery rubber rallied 2.4 percent to 249.2 yen a kilogram on the Tokyo Commodity Exchange at 12.24 p.m. Tokyo time. The bourse was closed yesterday for a holiday in Japan.
Rubber plantations in the four provinces affected by flooding accounted for about 20 percent of the country’s total plantation area of about 2.7 million hectares (6.7 million acres), according to the Rubber Research Institute of Thailand.
Output from Thailand may decline “about 10 percent” this year to between 2.7 million and 2.8 million tons as heavy rain disrupts production, Prapas Euanontat, the Thai Rubber Association’s secretary-general, said Nov. 16. The nation produced 3.1 million tons in 2008.
Rubber, used to make tires, also advanced after gold touched an all-time high of $1,174 an ounce yesterday as the dollar fell as much as 0.9 percent against the euro, boosting demand for commodities as alternative assets.
March-delivery rubber on the Shanghai Futures Exchange gained 0.3 percent to 21,900 yuan ($3,207) a ton at the 11.30 a.m. local time break.
Natural rubber stockpiles monitored by the bourse rose 4,130 tons to 133,997 tons, the exchange said on Nov. 20, the highest level since November 2004.
Saturday, November 21, 2009
Spot rubber prices stretch further
Spot rubber prices stretch further
Kottayam: Spot rubber increased further on Friday. According to observers, the market moved in tandem with the domestic futures as it recorded moderate gains in all contracts during the session. Sheet rubber firmed up further to Rs 114.50 from Rs 112.50 a kg on fresh buying, coupled with short covering. Widespread rains were reported once again from most of the plantation areas and major manufacturers still preferred to stay on the sidelines.
RSS 3 closed at Rs 120.97 (Rs 120.12) a kg on Singapore Commodity Exchange (SICOM). The grade moved up to Rs 119.96 (Rs 119.25) a kg at Bangkok.
Futures improve
The December futures for RSS 4 improved to Rs 118.35 (Rs 116.56) and January to Rs 120.50 (Rs 118.63 a kg on the National Multi-Commodity Exchange.
RSS 3 declined with the November futures slipping to ¥230.0 (234.5) (Rs 120.61), December to ¥237.0 (238.8) and January to ¥237.0 (238.0) on Tokyo Commodity Exchange. (BL)
http://www.thehindubusinessline.com/2009/11/21/stories/2009112151641600.htm
Kottayam: Spot rubber increased further on Friday. According to observers, the market moved in tandem with the domestic futures as it recorded moderate gains in all contracts during the session. Sheet rubber firmed up further to Rs 114.50 from Rs 112.50 a kg on fresh buying, coupled with short covering. Widespread rains were reported once again from most of the plantation areas and major manufacturers still preferred to stay on the sidelines.
RSS 3 closed at Rs 120.97 (Rs 120.12) a kg on Singapore Commodity Exchange (SICOM). The grade moved up to Rs 119.96 (Rs 119.25) a kg at Bangkok.
Futures improve
The December futures for RSS 4 improved to Rs 118.35 (Rs 116.56) and January to Rs 120.50 (Rs 118.63 a kg on the National Multi-Commodity Exchange.
RSS 3 declined with the November futures slipping to ¥230.0 (234.5) (Rs 120.61), December to ¥237.0 (238.8) and January to ¥237.0 (238.0) on Tokyo Commodity Exchange. (BL)
http://www.thehindubusinessline.com/2009/11/21/stories/2009112151641600.htm
Friday, November 20, 2009
Spot rubber prices up with global market
Spot rubber prices up with global market
Kottayam: Physical rubber prices flared up on Thursday. The market regained strength as the domestic and international futures were in extremely bullish mood on the National Multi-Commodity Exchange (NMCE) and the Singapore Commodity Exchange (SICOM).
Sheet rubber firmed up to Rs 112.50 from Rs 111.50 a kg, mainly on covering purchases. Major manufacturers stayed away from the market despite the short-supply and the absence of quantity sellers, an observer said.
RSS 3 moved up to Rs 120.12 a kg (Rs 118.27) on the SICOM. The grade (spot) gained further to Rs 119.25 a kg (118.14) at Bangkok.
Futures improve
December futures for RSS 4 improved to Rs 116.59 (Rs 114.48) and January to Rs 118.70 (Rs 116.55) a kg on the NMCE.
RSS 3 firmed up on Tokyo Commodity Exchange with the November futures rising to ¥234.5 (¥232.0) a kg (Rs 123.02); December to ¥238.8 (¥234.7) and January to ¥238.0 (¥233.3 during the day. (BL)
http://www.thehindubusinessline.com/2009/11/20/stories/2009112050591600.htm
Kottayam: Physical rubber prices flared up on Thursday. The market regained strength as the domestic and international futures were in extremely bullish mood on the National Multi-Commodity Exchange (NMCE) and the Singapore Commodity Exchange (SICOM).
Sheet rubber firmed up to Rs 112.50 from Rs 111.50 a kg, mainly on covering purchases. Major manufacturers stayed away from the market despite the short-supply and the absence of quantity sellers, an observer said.
RSS 3 moved up to Rs 120.12 a kg (Rs 118.27) on the SICOM. The grade (spot) gained further to Rs 119.25 a kg (118.14) at Bangkok.
Futures improve
December futures for RSS 4 improved to Rs 116.59 (Rs 114.48) and January to Rs 118.70 (Rs 116.55) a kg on the NMCE.
RSS 3 firmed up on Tokyo Commodity Exchange with the November futures rising to ¥234.5 (¥232.0) a kg (Rs 123.02); December to ¥238.8 (¥234.7) and January to ¥238.0 (¥233.3 during the day. (BL)
http://www.thehindubusinessline.com/2009/11/20/stories/2009112050591600.htm
Thursday, November 19, 2009
Demand-supply gap for rubber stretches
Demand-supply gap for rubber stretches........
Kochi :
The demand-supply gap for natural rubber in the country is set widen as production is expected to fall and demand set to rise above earlier estimates.The conditions in the global markets are no different. With the top seven rubber-producing countries, which account for 93 per cent of the global production, reporting lower output this year, the prices in the domestic and global markets are expected to remain firm.Rubber production for April-October period was 9.4 per cent lower at 4,35,125 tonnes against 4,80,230 tonnes last year. Consumption grewn three per cent to 5,36,100 tonnes (5,20,375 tonnes).The production-consumption mismatch resulted in a sharp rise in imports and a corresponding fall in exports. Imports increased 133 per cent to 1,26,472 tonnes (54,283 tonnes), while exports plunged 92 per cent to 3,859 tonnes (34,000 tonnes), sources in the Rubber Board said.The growth in consumption is likely to sustain given the spurt in economy and the surge in automobile sales. The demand for tyres has also been growing briskly with a large number of new tyre manufacturing units nearing completion and several of the existing ones increasing their capacity. (BL)http://www.thehindubusinessline.com/2009/11/19/stories/2009111951701800.htm
Kochi :
The demand-supply gap for natural rubber in the country is set widen as production is expected to fall and demand set to rise above earlier estimates.The conditions in the global markets are no different. With the top seven rubber-producing countries, which account for 93 per cent of the global production, reporting lower output this year, the prices in the domestic and global markets are expected to remain firm.Rubber production for April-October period was 9.4 per cent lower at 4,35,125 tonnes against 4,80,230 tonnes last year. Consumption grewn three per cent to 5,36,100 tonnes (5,20,375 tonnes).The production-consumption mismatch resulted in a sharp rise in imports and a corresponding fall in exports. Imports increased 133 per cent to 1,26,472 tonnes (54,283 tonnes), while exports plunged 92 per cent to 3,859 tonnes (34,000 tonnes), sources in the Rubber Board said.The growth in consumption is likely to sustain given the spurt in economy and the surge in automobile sales. The demand for tyres has also been growing briskly with a large number of new tyre manufacturing units nearing completion and several of the existing ones increasing their capacity. (BL)http://www.thehindubusinessline.com/2009/11/19/stories/2009111951701800.htm
Mixed trend in spot rubber
Mixed trend in spot rubber
Kottayam: The spot rubber market showed a mixed mood on Wednesday. Sheet rubber continued to close flat at Rs 111.50 a kg amidst dull volumes. Meanwhile, ISNR 20 and ungraded rubber gained on low supply.
There were no fresh enquiries on RSS 4 from major consuming industries and a better closing in domestic futures failed to make any impact on the grade.
Futures rise
December futures improved to Rs 114.50 (Rs 113.32), January to Rs 116.56 (Rs 115.45), February to Rs 118.45 (Rs 117.26) and March to Rs 120.20 (Rs 119.05) a kg for RSS 4 on National Multi-Commodity Exchange.
RSS 3 moved up marginally to Rs 118.27 (118.10) a kg on Singapore Commodity Exchange. The grade finished firm at Rs. 118.14 (117.66) a kg at Bangkok.
November futures for RSS 3 closed at ¥232.0 (¥234.3) and December at ¥234.7 (¥236.1) during the day session on Tokyo Commodity Exchange. (BL)
http://www.thehindubusinessline.com/2009/11/19/stories/2009111951781800.htm
Demand-supply gap for rubber stretches
Kochi : The demand-supply gap for natural rubber in the country is set widen as production is expected to fall and demand set to rise above earlier estimates.
The conditions in the global markets are no different. With the top seven rubber-producing countries, which account for 93 per cent of the global production, reporting lower output this year, the prices in the domestic and global markets are expected to remain firm.
Rubber production for April-October period was 9.4 per cent lower at 4,35,125 tonnes against 4,80,230 tonnes last year. Consumption grewn three per cent to 5,36,100 tonnes (5,20,375 tonnes).
The production-consumption mismatch resulted in a sharp rise in imports and a corresponding fall in exports. Imports increased 133 per cent to 1,26,472 tonnes (54,283 tonnes), while exports plunged 92 per cent to 3,859 tonnes (34,000 tonnes), sources in the Rubber Board said.
The growth in consumption is likely to sustain given the spurt in economy and the surge in automobile sales. The demand for tyres has also been growing briskly with a large number of new tyre manufacturing units nearing completion and several of the existing ones increasing their capacity. (BL)
http://www.thehindubusinessline.com/2009/11/19/stories/2009111951701800.htm
Kottayam: The spot rubber market showed a mixed mood on Wednesday. Sheet rubber continued to close flat at Rs 111.50 a kg amidst dull volumes. Meanwhile, ISNR 20 and ungraded rubber gained on low supply.
There were no fresh enquiries on RSS 4 from major consuming industries and a better closing in domestic futures failed to make any impact on the grade.
Futures rise
December futures improved to Rs 114.50 (Rs 113.32), January to Rs 116.56 (Rs 115.45), February to Rs 118.45 (Rs 117.26) and March to Rs 120.20 (Rs 119.05) a kg for RSS 4 on National Multi-Commodity Exchange.
RSS 3 moved up marginally to Rs 118.27 (118.10) a kg on Singapore Commodity Exchange. The grade finished firm at Rs. 118.14 (117.66) a kg at Bangkok.
November futures for RSS 3 closed at ¥232.0 (¥234.3) and December at ¥234.7 (¥236.1) during the day session on Tokyo Commodity Exchange. (BL)
http://www.thehindubusinessline.com/2009/11/19/stories/2009111951781800.htm
Demand-supply gap for rubber stretches
Kochi : The demand-supply gap for natural rubber in the country is set widen as production is expected to fall and demand set to rise above earlier estimates.
The conditions in the global markets are no different. With the top seven rubber-producing countries, which account for 93 per cent of the global production, reporting lower output this year, the prices in the domestic and global markets are expected to remain firm.
Rubber production for April-October period was 9.4 per cent lower at 4,35,125 tonnes against 4,80,230 tonnes last year. Consumption grewn three per cent to 5,36,100 tonnes (5,20,375 tonnes).
The production-consumption mismatch resulted in a sharp rise in imports and a corresponding fall in exports. Imports increased 133 per cent to 1,26,472 tonnes (54,283 tonnes), while exports plunged 92 per cent to 3,859 tonnes (34,000 tonnes), sources in the Rubber Board said.
The growth in consumption is likely to sustain given the spurt in economy and the surge in automobile sales. The demand for tyres has also been growing briskly with a large number of new tyre manufacturing units nearing completion and several of the existing ones increasing their capacity. (BL)
http://www.thehindubusinessline.com/2009/11/19/stories/2009111951701800.htm
Wednesday, November 18, 2009
Natural rubber imports dip 50%
Natural rubber imports dip 50%
Kochi : Natural rubber (NR) imports declined 50 per cent in October compared with the same month last year. The imports fell to 8,574 tonnes against 16,010 tonnes in October last year.
Till September, imports were on a rise due to a sharp increase in the local prices of the commodity. The international prices of RSS-3 grade were lower than the Indian prices, the difference being around Rs 17-18 a kg. This encouraged importers to utilise the price advantage.
The rubber-based industry, especially tyre makers, also reaped the benefits of the global price advantage, leading to a rise in imports in the first half. This sharp rise in imports led to an increase in the rubber stock in India. By the end of October, the country possessed 219,000 tonnes of rubber as against 150,000 tonnes in the same period last year.
At present, the price situation is in a reverse mode as the international prices are higher by Rs 7-8 a kg compared with the local prices. So, the imports have become unviable. (BS)
http://www.business-standard.com/india/news/natural-rubber-imports-dip-50/376736/
Kochi : Natural rubber (NR) imports declined 50 per cent in October compared with the same month last year. The imports fell to 8,574 tonnes against 16,010 tonnes in October last year.
Till September, imports were on a rise due to a sharp increase in the local prices of the commodity. The international prices of RSS-3 grade were lower than the Indian prices, the difference being around Rs 17-18 a kg. This encouraged importers to utilise the price advantage.
The rubber-based industry, especially tyre makers, also reaped the benefits of the global price advantage, leading to a rise in imports in the first half. This sharp rise in imports led to an increase in the rubber stock in India. By the end of October, the country possessed 219,000 tonnes of rubber as against 150,000 tonnes in the same period last year.
At present, the price situation is in a reverse mode as the international prices are higher by Rs 7-8 a kg compared with the local prices. So, the imports have become unviable. (BS)
http://www.business-standard.com/india/news/natural-rubber-imports-dip-50/376736/
Spot rubber rules firm
Kottayam: Physical rubber prices were steady on Tuesday. The market lost its direction as there was no follow-up buying from the major manufacturers during the second trading day of the week.
A weak closing in the domestic futures and uninspiring reports from international markets kept the sentiments almost neutral. Sheet rubber closed flat at Rs 111.50 a kg amidst comparatively dull volumes.
Futures weaken
The December futures weakened to Rs 113.30 (Rs 113.98), January to Rs 115.51 (Rs 116.21), February to Rs 117.37 (Rs 117.88) and March to Rs 119.01 (Rs 119.84) a kg for RSS 4 on National Multi Commodity Exchange.
RSS 3 slipped further to Rs 118.10 (Rs 118.45) a kg on Singapore Commodity Exchange. The grade improved to Rs. 117.66 (Rs 117.35) a kg at Bangkok.
The November futures for RSS 3 closed at ¥234.3 (¥234.9) (Rs.121.65) and December at ¥236.1 (¥235.5. (BL)
http://www.thehindubusinessline.com/2009/11/18/stories/2009111850631600.htm
Tuesday, November 17, 2009
Rubber Reaches 13-Month High on Japan’s Growth, Gold’s Rally
Rubber Reaches 13-Month High on Japan’s Growth, Gold’s Rally
Nov. 16 (Bloomberg) -- Rubber climbed to a 13-month high as Japan’s economy expanded at the fastest pace in more than two years, boosting investor confidence that an economic recovery will boost demand for the commodity used in tires.
Futures in Tokyo rose as much as 1.8 percent to the highest level since Oct. 3, 2008. Rubber also gained as a weaker dollar pushed gold to a record, stoking speculation investor demand for commodities will grow, said Takaki Shigemoto, a commodity analyst at research and investment company JSC Corp. in Tokyo.
“The strong economic data spurred investors to increase holdings of risky assets, leading to a rally in gold and other commodities,” Shigemoto said today by phone.
April-delivery rubber climbed as much as 4.2 yen to 239.4 yen a kilogram ($2,672 a metric ton) on the Tokyo Commodity Exchange before settling at 236.7 yen.
Japan’s economy grew at an annual 4.8 percent pace in the third quarter, the second straight expansion. Gross domestic product accelerated from a revised 2.7 percent expansion in the three months ended June 30, the Cabinet Office said today in Tokyo. The median estimate of 20 economists surveyed by Bloomberg News was for a 2.9 percent expansion.
“The GDP data were much stronger than expected, boosting risk appetite,” said Yuji Saito, head of the foreign-exchange group in Tokyo at Societe Generale SA.
Thai Production
Rubber also increased on speculation that output in Thailand, the world’s largest producer and exporter, may drop as heavy rains disrupted plantation work in the southern part of the country, the main producing area, Shigemoto said.
Thai shippers raised offers for so-called RSS-3 grade rubber for December shipment to $2.46 a kilogram today from $2.43 Nov. 13, as some plantations were hit by floods, he said.
Thai rubber output may decline to between 2 million metric tons and 2.5 million tons this year because of excess rainfall, down from 3.1 million tons last year, Somchai Charnnarongkul, head of Thailand’s agriculture department, said Nov. 4.
Gold advanced to a record $1,130.43 an ounce as a weaker dollar increased the investment appeal of the metal. The dollar fell for a second day against a basket of six major currencies as Japan’s GDP data prompted investors to sell the dollar for higher-yielding currencies.
Rubber on the Shanghai Futures Exchange Futures Exchange gained as much as 1.7 percent to 20,990 yuan ($3,074) a ton, the highest level for the most-active contract since September 2008. The March-delivery contract settled at 20,800 yuan.
The market extended gains after data last week indicated that China’s economic expansion accelerated, boosting speculation demand will increase in the world’s largest consumer of natural rubber, Shigemoto said. China’s industrial production rose 16.1 percent from a year before, the most since March 2008, the statistics bureau said in Beijing Nov. 11.
The Shanghai exchange reported Nov. 13 that natural rubber stockpiles monitored by the bourse rose 9,170 tons to 129,867 tons, the highest level since November 2004.
Nov. 16 (Bloomberg) -- Rubber climbed to a 13-month high as Japan’s economy expanded at the fastest pace in more than two years, boosting investor confidence that an economic recovery will boost demand for the commodity used in tires.
Futures in Tokyo rose as much as 1.8 percent to the highest level since Oct. 3, 2008. Rubber also gained as a weaker dollar pushed gold to a record, stoking speculation investor demand for commodities will grow, said Takaki Shigemoto, a commodity analyst at research and investment company JSC Corp. in Tokyo.
“The strong economic data spurred investors to increase holdings of risky assets, leading to a rally in gold and other commodities,” Shigemoto said today by phone.
April-delivery rubber climbed as much as 4.2 yen to 239.4 yen a kilogram ($2,672 a metric ton) on the Tokyo Commodity Exchange before settling at 236.7 yen.
Japan’s economy grew at an annual 4.8 percent pace in the third quarter, the second straight expansion. Gross domestic product accelerated from a revised 2.7 percent expansion in the three months ended June 30, the Cabinet Office said today in Tokyo. The median estimate of 20 economists surveyed by Bloomberg News was for a 2.9 percent expansion.
“The GDP data were much stronger than expected, boosting risk appetite,” said Yuji Saito, head of the foreign-exchange group in Tokyo at Societe Generale SA.
Thai Production
Rubber also increased on speculation that output in Thailand, the world’s largest producer and exporter, may drop as heavy rains disrupted plantation work in the southern part of the country, the main producing area, Shigemoto said.
Thai shippers raised offers for so-called RSS-3 grade rubber for December shipment to $2.46 a kilogram today from $2.43 Nov. 13, as some plantations were hit by floods, he said.
Thai rubber output may decline to between 2 million metric tons and 2.5 million tons this year because of excess rainfall, down from 3.1 million tons last year, Somchai Charnnarongkul, head of Thailand’s agriculture department, said Nov. 4.
Gold advanced to a record $1,130.43 an ounce as a weaker dollar increased the investment appeal of the metal. The dollar fell for a second day against a basket of six major currencies as Japan’s GDP data prompted investors to sell the dollar for higher-yielding currencies.
Rubber on the Shanghai Futures Exchange Futures Exchange gained as much as 1.7 percent to 20,990 yuan ($3,074) a ton, the highest level for the most-active contract since September 2008. The March-delivery contract settled at 20,800 yuan.
The market extended gains after data last week indicated that China’s economic expansion accelerated, boosting speculation demand will increase in the world’s largest consumer of natural rubber, Shigemoto said. China’s industrial production rose 16.1 percent from a year before, the most since March 2008, the statistics bureau said in Beijing Nov. 11.
The Shanghai exchange reported Nov. 13 that natural rubber stockpiles monitored by the bourse rose 9,170 tons to 129,867 tons, the highest level since November 2004.
Thai Rubber Output to Slump on Heavy Rainfall
Thai Rubber Output to Slump on Heavy Rainfall, Association Says
Nov. 17 (Bloomberg) -- Rubber output from Thailand, the world’s largest producer, may decline “about 10 percent” this year as heavy rainfall disrupts production, according to the Thai Rubber Association.
Output will be 2.7 million to 2.8 million metric tons in 2010 compared with 3.1 million tons in 2008, Prapas Euanontat, the association’s secretary-general, said in an interview. Lower fertilizer use also contributed to reduced yields this year after the cost of the farming input rose, Prapas said by phone.
The drop in production may help to extend a 76 percent gain in futures prices this year. The estimate from the association, whose members represent about 85 percent of the nation’s output, compares with a Nov. 4 projection from the Thai Department of Agriculture for a fall to between 2 million and 2.5 million tons.
“Rainfall lowers tapping days,” Prapas said yesterday from the southern province of Nakhon Si Thammarat. Most Thai rubber is cultivated in the south. Output may rebound to about 3.1 million tons next year as higher prices prompt farmers to use “all their might to increase production,” said Prapas.
Futures on the Tokyo Commodity Exchange reached 240.7 yen a kilogram today, the highest price since October 2008. The commodity, which was at 239.5 yen at 9:18 a.m. in Singapore, has surged this year on increased investor interest in commodities, higher oil prices and speculation that a global recovery will spur demand.
Delayed Deliveries
“There is a strong possibility that total output will reach 3.1 million tons next year, thanks to price incentives,” said Rewat Yenchai, an analyst at AGROW Enterprise Ltd. in Bangkok. This year’s rainfall has “delayed product delivery into the market,” Rewat said.
Heavy rain in Thailand’s southern provinces may cut supply, Yium Tavarolit, an economist at the International Rubber Consortium Ltd., said on Oct. 27. The wet weather in some southern provinces is expected to continue this week, according to a weekly forecast from the Meteorological Department.
Thailand, Indonesia and Malaysia, the three biggest producers, had suspended a plan agreed to last year to pare exports, the International Rubber Consortium said last month. The reversal came as the global economic recovery stoked demand.
The three nations, which harvest about 7 million tons a year, cut exports by 690,000 tons in the January-to-July period, approaching the 700,000 ton target set in December to combat last year’s 56 percent slump in prices.
Thailand is expected to ship 2.31 million tons of rubber this year, according to an October forecast from the Association of National Rubber Producing Countries. The prediction in the group’s monthly bulletin was unchanged from September.
Nov. 17 (Bloomberg) -- Rubber output from Thailand, the world’s largest producer, may decline “about 10 percent” this year as heavy rainfall disrupts production, according to the Thai Rubber Association.
Output will be 2.7 million to 2.8 million metric tons in 2010 compared with 3.1 million tons in 2008, Prapas Euanontat, the association’s secretary-general, said in an interview. Lower fertilizer use also contributed to reduced yields this year after the cost of the farming input rose, Prapas said by phone.
The drop in production may help to extend a 76 percent gain in futures prices this year. The estimate from the association, whose members represent about 85 percent of the nation’s output, compares with a Nov. 4 projection from the Thai Department of Agriculture for a fall to between 2 million and 2.5 million tons.
“Rainfall lowers tapping days,” Prapas said yesterday from the southern province of Nakhon Si Thammarat. Most Thai rubber is cultivated in the south. Output may rebound to about 3.1 million tons next year as higher prices prompt farmers to use “all their might to increase production,” said Prapas.
Futures on the Tokyo Commodity Exchange reached 240.7 yen a kilogram today, the highest price since October 2008. The commodity, which was at 239.5 yen at 9:18 a.m. in Singapore, has surged this year on increased investor interest in commodities, higher oil prices and speculation that a global recovery will spur demand.
Delayed Deliveries
“There is a strong possibility that total output will reach 3.1 million tons next year, thanks to price incentives,” said Rewat Yenchai, an analyst at AGROW Enterprise Ltd. in Bangkok. This year’s rainfall has “delayed product delivery into the market,” Rewat said.
Heavy rain in Thailand’s southern provinces may cut supply, Yium Tavarolit, an economist at the International Rubber Consortium Ltd., said on Oct. 27. The wet weather in some southern provinces is expected to continue this week, according to a weekly forecast from the Meteorological Department.
Thailand, Indonesia and Malaysia, the three biggest producers, had suspended a plan agreed to last year to pare exports, the International Rubber Consortium said last month. The reversal came as the global economic recovery stoked demand.
The three nations, which harvest about 7 million tons a year, cut exports by 690,000 tons in the January-to-July period, approaching the 700,000 ton target set in December to combat last year’s 56 percent slump in prices.
Thailand is expected to ship 2.31 million tons of rubber this year, according to an October forecast from the Association of National Rubber Producing Countries. The prediction in the group’s monthly bulletin was unchanged from September.
Saturday, November 14, 2009
Demand-supply gap in rubber likely to stretch further
Demand-supply gap in rubber likely to stretch further
Kochi: Given the handsome returns as the price of natural rubber continues to hover over Rs 100 a kg, farmers are unwilling to cut down their low-yielding aged rubber trees and re-plant them with new high-yielding clones.
Rubber prices end flat
Kottayam: The physical rubber prices finished almost unchanged on Friday. According to observers, the market was rather calm with a decline in volumes during the session.
The domestic and international futures were mostly range-bound with minor variations and hence the sentiments failed to strengthen as expected. Sheet rubber was flat at Rs 110.50 a kg amidst scattered transactions.
Meanwhile, ISNR 20 gained further on fresh enquiries from the non-tyre sector. The trend continued to be mixed.
The November futures firmed up to Rs 112.10 (Rs 111.20), December to Rs 113.75 (Rs 113.00), January to Rs 115.81 (Rs 115.02) and February to Rs 117.55 (Rs 116.69) a kg for RSS 4 on National Multi Commodity Exchange (NMCE). RSS 3 (spot) firmed up marginally to Rs 116.80 (Rs 116.27) a kg at Bangkok.
The grade closed at Rs 118.52 (Rs 117.60) a kg on Singapore Commodity Exchange (SICOM). The November futures improved to ¥233.9 (¥233.5) (which is Rs120.69), while the December futures slipped to ¥234.3 (¥234.4), January to ¥231.8 (¥232.7), February to ¥232.6 (¥234.3), March to ¥233.7 (¥235.3) and April to ¥235.2 (¥237.3) a kg for RSS 3 during the day session on Tokyo Commodity Exchange. The November futures moved up to ¥234.7, December to ¥234.7, January to ¥233.3, February to ¥234.2, March to ¥235.8 and April to ¥237.6 a kg. (BL)
http://www.thehindubusinessline.com/2009/11/14/stories/2009111450631300.htm
“The yields from aged trees might be falling but the farmer is unwilling to undertake re-planting since the returns continue to be quite handsome and there is a time lag of seven years before the new plants begin to yield – a period of all expenditure and no returns,” Mr N. Radhakrishnan, former President of the Cochin Rubber Merchants Association, said.
Output falls
While natural rubber output fell by 9.5 per cent to 4,35,125 tonnes during the first seven months of the current fiscal, consumption has edged up three per cent to 5,36,100 tonnes. The demand-supply mismatch in the country, which had been relatively self-sufficient for the past two decades, has already crossed one lakh tonnes during the April-September period. And the situation is likely to deteriorate in the times ahead, sources in the industry warned.
As fewer areas have been coming under rubber plantations and the areas under aged trees have been growing, the demand-supply mismatch is set to widen to 4-5 lakh tonnes by 2014-15, Mr Radhakrishnan said. While supply is likely to stagnate at around 8.5-9 lakh tonnes, demand is expected to spurt to 13.5-14 lakh tonnes. (BL)
http://www.thehindubusinessline.com/2009/11/14/stories/2009111450751300.htm
Kochi: Given the handsome returns as the price of natural rubber continues to hover over Rs 100 a kg, farmers are unwilling to cut down their low-yielding aged rubber trees and re-plant them with new high-yielding clones.
Rubber prices end flat
Kottayam: The physical rubber prices finished almost unchanged on Friday. According to observers, the market was rather calm with a decline in volumes during the session.
The domestic and international futures were mostly range-bound with minor variations and hence the sentiments failed to strengthen as expected. Sheet rubber was flat at Rs 110.50 a kg amidst scattered transactions.
Meanwhile, ISNR 20 gained further on fresh enquiries from the non-tyre sector. The trend continued to be mixed.
The November futures firmed up to Rs 112.10 (Rs 111.20), December to Rs 113.75 (Rs 113.00), January to Rs 115.81 (Rs 115.02) and February to Rs 117.55 (Rs 116.69) a kg for RSS 4 on National Multi Commodity Exchange (NMCE). RSS 3 (spot) firmed up marginally to Rs 116.80 (Rs 116.27) a kg at Bangkok.
The grade closed at Rs 118.52 (Rs 117.60) a kg on Singapore Commodity Exchange (SICOM). The November futures improved to ¥233.9 (¥233.5) (which is Rs120.69), while the December futures slipped to ¥234.3 (¥234.4), January to ¥231.8 (¥232.7), February to ¥232.6 (¥234.3), March to ¥233.7 (¥235.3) and April to ¥235.2 (¥237.3) a kg for RSS 3 during the day session on Tokyo Commodity Exchange. The November futures moved up to ¥234.7, December to ¥234.7, January to ¥233.3, February to ¥234.2, March to ¥235.8 and April to ¥237.6 a kg. (BL)
http://www.thehindubusinessline.com/2009/11/14/stories/2009111450631300.htm
“The yields from aged trees might be falling but the farmer is unwilling to undertake re-planting since the returns continue to be quite handsome and there is a time lag of seven years before the new plants begin to yield – a period of all expenditure and no returns,” Mr N. Radhakrishnan, former President of the Cochin Rubber Merchants Association, said.
Output falls
While natural rubber output fell by 9.5 per cent to 4,35,125 tonnes during the first seven months of the current fiscal, consumption has edged up three per cent to 5,36,100 tonnes. The demand-supply mismatch in the country, which had been relatively self-sufficient for the past two decades, has already crossed one lakh tonnes during the April-September period. And the situation is likely to deteriorate in the times ahead, sources in the industry warned.
As fewer areas have been coming under rubber plantations and the areas under aged trees have been growing, the demand-supply mismatch is set to widen to 4-5 lakh tonnes by 2014-15, Mr Radhakrishnan said. While supply is likely to stagnate at around 8.5-9 lakh tonnes, demand is expected to spurt to 13.5-14 lakh tonnes. (BL)
http://www.thehindubusinessline.com/2009/11/14/stories/2009111450751300.htm
Rubber prices firm
Rubber prices firm
Kottayam: The rubber prices firmed up further on Thursday. According to sources, the sentiments remained positive as the reports from international markets were promising.
A firm closing in the November delivery on National Multi Commodity Exchange also helped the physical prices stabilise at higher levels. Sheet rubber firmed up to Rs 110.50 from Rs 109.50 a kg mainly on covering purchases. The trend was mixed.
The November futures closed at Rs 111.10 (Rs 110.61), December at Rs 113 (Rs 113.23), January at Rs 115 (Rs 115.25) and February at Rs 116.52 (Rs 117.10) a kg for RSS 4 on NMCE.
RSS 3 improved to Rs 117.60 (Rs 116.05) a kg on Singapore Commodity Exchange (SICOM). The grade (spot) closed weak at Rs 116.27 (Rs 115.46) a kg at Bangkok.
On Tokyo Commodity Exchange, November futures moved up to ¥ 233.5 (¥229.8) , December to ¥234.4 (¥228.6), January to ¥ 232.7 (¥226.1) , February to ¥ 234.3 (¥227.7), March to ¥ 235.3 (¥228.8) and April at ¥ 237.3 (¥230.4) a kg for RSS 3 during the day session. (BL)
http://www.thehindubusinessline.com/2009/11/13/stories/2009111351421600.htm
Kottayam: The rubber prices firmed up further on Thursday. According to sources, the sentiments remained positive as the reports from international markets were promising.
A firm closing in the November delivery on National Multi Commodity Exchange also helped the physical prices stabilise at higher levels. Sheet rubber firmed up to Rs 110.50 from Rs 109.50 a kg mainly on covering purchases. The trend was mixed.
The November futures closed at Rs 111.10 (Rs 110.61), December at Rs 113 (Rs 113.23), January at Rs 115 (Rs 115.25) and February at Rs 116.52 (Rs 117.10) a kg for RSS 4 on NMCE.
RSS 3 improved to Rs 117.60 (Rs 116.05) a kg on Singapore Commodity Exchange (SICOM). The grade (spot) closed weak at Rs 116.27 (Rs 115.46) a kg at Bangkok.
On Tokyo Commodity Exchange, November futures moved up to ¥ 233.5 (¥229.8) , December to ¥234.4 (¥228.6), January to ¥ 232.7 (¥226.1) , February to ¥ 234.3 (¥227.7), March to ¥ 235.3 (¥228.8) and April at ¥ 237.3 (¥230.4) a kg for RSS 3 during the day session. (BL)
http://www.thehindubusinessline.com/2009/11/13/stories/2009111351421600.htm
Thursday, November 12, 2009
Rubber prices improve
Rubber prices improve
Kottayam : The physical rubber prices improved on Wednesday. The market opened steady but improved on late trading hours following the firm price movements in the domestic futures on National Multi Commodity Exchange (NMCE).
Sheet rubber firmed up to Rs 110 from Rs 109.50 a kg on better demand. There was no selling pressure in the main marketing centres but the volumes were comparatively better.
RSS 4 improved at its November futures to Rs 110.85 (Rs 110.03), December to Rs 113.10 (Rs 111.94), January to Rs 115.12 (Rs 114) and February to Rs 117 (Rs 115.81) a kg on NMCE. RSS 3 slipped to Rs 116.05 (Rs 116.29) a kg on Singapore Commodity Exchange. The grade closed weak at Rs 115.46 (Rs 115.50) a kg at Bangkok.
On Tokyo Commodity Exchange, the November futures closed at ¥229.8 (¥228.9) (Rs. 118.27), December at ¥228.6 (¥228.2), January at ¥226.1 (¥226.5), February at ¥227.7 (¥227), March at ¥228.8 (¥227.8) and April at ¥230.4 (¥229.3) a kg for RSS 3 during the day session. (BL)
http://www.thehindubusinessline.com/2009/11/12/stories/2009111250921600.htm
Kottayam : The physical rubber prices improved on Wednesday. The market opened steady but improved on late trading hours following the firm price movements in the domestic futures on National Multi Commodity Exchange (NMCE).
Sheet rubber firmed up to Rs 110 from Rs 109.50 a kg on better demand. There was no selling pressure in the main marketing centres but the volumes were comparatively better.
RSS 4 improved at its November futures to Rs 110.85 (Rs 110.03), December to Rs 113.10 (Rs 111.94), January to Rs 115.12 (Rs 114) and February to Rs 117 (Rs 115.81) a kg on NMCE. RSS 3 slipped to Rs 116.05 (Rs 116.29) a kg on Singapore Commodity Exchange. The grade closed weak at Rs 115.46 (Rs 115.50) a kg at Bangkok.
On Tokyo Commodity Exchange, the November futures closed at ¥229.8 (¥228.9) (Rs. 118.27), December at ¥228.6 (¥228.2), January at ¥226.1 (¥226.5), February at ¥227.7 (¥227), March at ¥228.8 (¥227.8) and April at ¥230.4 (¥229.3) a kg for RSS 3 during the day session. (BL)
http://www.thehindubusinessline.com/2009/11/12/stories/2009111250921600.htm
Rubber Advances to 13-Month High as Gold’s Rally Boosts Demand
Rubber Advances to 13-Month High as Gold’s Rally Boosts Demand
Nov. 12 (Bloomberg) -- Rubber climbed to the highest level in 13 months after gold rallied to a record for a second day, boosting speculation investor demand for commodities will grow.
Futures in Tokyo gained as much as 2.7 percent to the highest level since Oct. 6, 2008. Gold for immediate delivery reached $1,122 an ounce as the dollar weakened on speculation U.S. interest rates will remain low, spurring demand for the precious metal as a currency alternative.
“Rubber chased a rally in gold,” Kazuhiko Saito, chief analyst at commodity broker Fujitomi Co. in Tokyo, said today by phone. “Investors will likely increase purchases of commodities as an inflation hedge on signs that central banks will keep interest rates at very low levels.”
April-delivery rubber rose as much as 6.2 yen to 236.8 yen a kilogram ($2,634 a metric ton) on the Tokyo Commodity Exchange before trading at 235.7 yen at 12:54 p.m. local time. Prices gained 73 percent this year.
Rubber on the Shanghai Futures Exchange surged as much as 3.2 percent to 20,375 yuan ($2,985) a ton, the highest level for the most-active contract since September last year. The March- delivery contract traded at 20,300 yuan at the 11:30 a.m. local time break.
The market extended gains after data yesterday indicated that China’s economic expansion accelerated, boosting speculation demand will increase in the world’s largest consumer of natural rubber, Saito said.
Industrial Production
China’s industrial production rose 16.1 percent from a year before, the most since March 2008, the statistics bureau said in Beijing yesterday. Retail sales gained an annual 16.2 percent in October, and urban fixed-asset investment climbed 33.1 percent in the first 10 months of this year, it said.
Gold for immediate delivery traded at $1,121.45 as of 12:53 p.m. Tokyo time. The metal has risen 27 percent this year, heading for a ninth annual gain, the longest winning run since at least 1948, as the Dollar Index, a gauge of the greenback’s value against six major currencies, tumbled 7.8 percent.
Federal Reserve Bank of Dallas President Richard Fisher said Nov. 10 that economic growth and inflation may persist below ideal levels into 2011, making the central bank’s current interest-rate stance “appropriate.”
Nov. 12 (Bloomberg) -- Rubber climbed to the highest level in 13 months after gold rallied to a record for a second day, boosting speculation investor demand for commodities will grow.
Futures in Tokyo gained as much as 2.7 percent to the highest level since Oct. 6, 2008. Gold for immediate delivery reached $1,122 an ounce as the dollar weakened on speculation U.S. interest rates will remain low, spurring demand for the precious metal as a currency alternative.
“Rubber chased a rally in gold,” Kazuhiko Saito, chief analyst at commodity broker Fujitomi Co. in Tokyo, said today by phone. “Investors will likely increase purchases of commodities as an inflation hedge on signs that central banks will keep interest rates at very low levels.”
April-delivery rubber rose as much as 6.2 yen to 236.8 yen a kilogram ($2,634 a metric ton) on the Tokyo Commodity Exchange before trading at 235.7 yen at 12:54 p.m. local time. Prices gained 73 percent this year.
Rubber on the Shanghai Futures Exchange surged as much as 3.2 percent to 20,375 yuan ($2,985) a ton, the highest level for the most-active contract since September last year. The March- delivery contract traded at 20,300 yuan at the 11:30 a.m. local time break.
The market extended gains after data yesterday indicated that China’s economic expansion accelerated, boosting speculation demand will increase in the world’s largest consumer of natural rubber, Saito said.
Industrial Production
China’s industrial production rose 16.1 percent from a year before, the most since March 2008, the statistics bureau said in Beijing yesterday. Retail sales gained an annual 16.2 percent in October, and urban fixed-asset investment climbed 33.1 percent in the first 10 months of this year, it said.
Gold for immediate delivery traded at $1,121.45 as of 12:53 p.m. Tokyo time. The metal has risen 27 percent this year, heading for a ninth annual gain, the longest winning run since at least 1948, as the Dollar Index, a gauge of the greenback’s value against six major currencies, tumbled 7.8 percent.
Federal Reserve Bank of Dallas President Richard Fisher said Nov. 10 that economic growth and inflation may persist below ideal levels into 2011, making the central bank’s current interest-rate stance “appropriate.”
Wednesday, November 11, 2009
Commodity futures turnover up 34%
Commodity futures turnover up 34%
Mumbai: India’s total commodity futures turnover from three national exchanges and 18 regional exchanges during April-October period stood at Rs 40.05 lakh crore, up 34.09 per cent from a year ago, according to an official at Forward Markets Commission (FMC).
The total turnover during the October 16-31 fortnight rose 79.82 per cent on year to Rs 3.45 lakh crore, compared with Rs 1.92 lakh crore during the same period last year, the official said.
MCX, National Commodity and Derivatives Exchange, and National Multi-Commodity Exchange are the three national bourses in the country.
During October 16-31, turnover of MCX, the country’s top exchange in terms of turnover, was Rs 2.86 lakh crore, up 66 per cent on year, the FMC official said.
NCDEX’s turnover during the same period increased by 171 per cent to Rs 45,713 crore, compared with Rs 16,860 crore registered a year ago, he said.
However, NMCE registered the highest percentage rise in turnover, though on a low base, the official said. NMCE’s turnover during October 16-31 period was Rs 10,031 crore, up 536 per cent from Rs 1,578 crore a year ago, he said. (BS)
http://www.business-standard.com/india/news/commodity-futures-turnover34/375998/
Mumbai: India’s total commodity futures turnover from three national exchanges and 18 regional exchanges during April-October period stood at Rs 40.05 lakh crore, up 34.09 per cent from a year ago, according to an official at Forward Markets Commission (FMC).
The total turnover during the October 16-31 fortnight rose 79.82 per cent on year to Rs 3.45 lakh crore, compared with Rs 1.92 lakh crore during the same period last year, the official said.
MCX, National Commodity and Derivatives Exchange, and National Multi-Commodity Exchange are the three national bourses in the country.
During October 16-31, turnover of MCX, the country’s top exchange in terms of turnover, was Rs 2.86 lakh crore, up 66 per cent on year, the FMC official said.
NCDEX’s turnover during the same period increased by 171 per cent to Rs 45,713 crore, compared with Rs 16,860 crore registered a year ago, he said.
However, NMCE registered the highest percentage rise in turnover, though on a low base, the official said. NMCE’s turnover during October 16-31 period was Rs 10,031 crore, up 536 per cent from Rs 1,578 crore a year ago, he said. (BS)
http://www.business-standard.com/india/news/commodity-futures-turnover34/375998/
Spot rubber prices unchanged
Spot rubber prices unchanged
Kottayam: Spot rubber prices finished unchanged on Tuesday. The market was almost inactive and neutral as there were no quantity buyers or sellers to set the trend.
Sheet rubber finished flat at Rs 109.50 a kg consecutively for the eight day amidst scattered transactions.
Major manufacturers were not interested in expanding their commitments as a continuation of their purchase policy during the past few weeks. The November futures for RSS 4 closed at Rs 110.15 (Rs 109.90), December at Rs 111.89 (Rs 112.21), January at Rs 114.00 (Rs 114.19) and February at Rs 115.88 (Rs 115.91) a kg on National Multi Commodity Exchange.
RSS 3 weakened at its November futures to ¥228.9 (¥229.5) (Rs 118.06), December to ¥228.2 (¥229.8) , January to ¥226.5 (¥229.0), February to ¥227(¥229.6), March to ¥227.8 (¥230.3) and April to ¥229.3 (¥232.1) a kg during the day’s session on Tokyo Commodity Exchange. (BL)
http://www.thehindubusinessline.com/2009/11/11/stories/2009111150071300.htm
Natural rubber output falls 9.5%
Kochi :Boosting chances of a further increase in prices, natural rubber (NR) production in the country dropped 9.5 per cent during the first seven months of the current financial year. The production fell to 435,125 tonnes during April-October, as against 480,230 tonnes in the same period last year.
According to latest estimates of the Rubber Board, consumption edged up 3 per cent to 536,100 tonnes. The ongoing mismatch between production and consumption is likely to strengthen the bull phase in the NR market. The price of benchmark grade RSS-4 is currently ruling at Rs 109-110 a kg.
The fall in production is a serious concern for rubber-consuming industries since import is not a viable option in the present situation.
Though local traders expect prices to come down, as rubber production would be at its peak during the November-January period. There would be a good supply to the market due to which prices may fall, said a leading Kochi-based trader. (BS)
http://www.business-standard.com/india/news/natural-rubber-output-falls-95/375997/
Kottayam: Spot rubber prices finished unchanged on Tuesday. The market was almost inactive and neutral as there were no quantity buyers or sellers to set the trend.
Sheet rubber finished flat at Rs 109.50 a kg consecutively for the eight day amidst scattered transactions.
Major manufacturers were not interested in expanding their commitments as a continuation of their purchase policy during the past few weeks. The November futures for RSS 4 closed at Rs 110.15 (Rs 109.90), December at Rs 111.89 (Rs 112.21), January at Rs 114.00 (Rs 114.19) and February at Rs 115.88 (Rs 115.91) a kg on National Multi Commodity Exchange.
RSS 3 weakened at its November futures to ¥228.9 (¥229.5) (Rs 118.06), December to ¥228.2 (¥229.8) , January to ¥226.5 (¥229.0), February to ¥227(¥229.6), March to ¥227.8 (¥230.3) and April to ¥229.3 (¥232.1) a kg during the day’s session on Tokyo Commodity Exchange. (BL)
http://www.thehindubusinessline.com/2009/11/11/stories/2009111150071300.htm
Natural rubber output falls 9.5%
Kochi :Boosting chances of a further increase in prices, natural rubber (NR) production in the country dropped 9.5 per cent during the first seven months of the current financial year. The production fell to 435,125 tonnes during April-October, as against 480,230 tonnes in the same period last year.
According to latest estimates of the Rubber Board, consumption edged up 3 per cent to 536,100 tonnes. The ongoing mismatch between production and consumption is likely to strengthen the bull phase in the NR market. The price of benchmark grade RSS-4 is currently ruling at Rs 109-110 a kg.
The fall in production is a serious concern for rubber-consuming industries since import is not a viable option in the present situation.
Though local traders expect prices to come down, as rubber production would be at its peak during the November-January period. There would be a good supply to the market due to which prices may fall, said a leading Kochi-based trader. (BS)
http://www.business-standard.com/india/news/natural-rubber-output-falls-95/375997/
Tuesday, November 10, 2009
Rubber Reaches Two-Week High on Chinese Car Sales, Stock Rally
Rubber Reaches Two-Week High on Chinese Car Sales, Stock Rally
Nov. 10 (Bloomberg) -- Rubber climbed to a two-week high as data showed a 76 percent increase in car sales in China and global stocks rallied, boosting investor confidence that demand for the commodity used in tires will increase.
Futures in Tokyo gained as much as 1.2 percent to the highest level since Oct. 23. Sales in China of cars, sport- utility vehicles and multipurpose vehicles climbed to 946,400 units in October as economic growth and stimulus measures spurred demand in the world’s top auto market so far this year.
“The strong data added to optimism that car sales in China will keep rising, leading to growth in rubber demand,” Hisaaki Tasaka, an analyst at commodity broker ACE Koeki Co. in Tokyo, said today. China is the world’s largest rubber consumer.
April-delivery rubber rose as much as 2.7 yen to 234.8 yen a kilogram ($2,610 a metric ton) on the Tokyo Commodity Exchange before trading at 234.3 yen at 11:07 a.m. local time. Prices have gained 72 percent this year.
China’s car sales in the first 10 months rose 45.2 percent to 8.19 million, according to the China Association of Automobile Manufacturers, which released the data yesterday after the close of trade in Tokyo. China’s government cut vehicle taxes and introduced subsidies in rural areas this year after vehicle demand plunged amid an economic slowdown.
Automakers including Toyota Motor Corp., the world’s largest, have raised global sales forecasts for this year partly because of growing demand in China.
Auto sales growth will continue next year, Yale Zhang, a Shanghai-based director at auto-consulting company CSM Asia, said yesterday. The government will probably extend stimulus measures that are scheduled to finish at the yearend, he said.
Stock Rally
Asian stocks extended a global rally, lifting the MSCI Asia Pacific Index for a third day. In New York, the Dow Jones Industrial Average climbed to a 13-month high yesterday after the Group of 20 nations agreed to maintain stimulus efforts.
The rally in global stocks boosted investor confidence that economic recovery will increase raw-material demand, Tasaka said.
January-deliver rubber on the Shanghai Futures Exchange added 0.8 percent to 19,200 yuan ($2,813) a ton at 9:39 a.m. local time. Prices were capped after the exchange said Nov. 6 that rubber stockpiles monitored by the bourse rose 3,784 tons to 120,697 tons, the highest level since November 2004.
Nov. 10 (Bloomberg) -- Rubber climbed to a two-week high as data showed a 76 percent increase in car sales in China and global stocks rallied, boosting investor confidence that demand for the commodity used in tires will increase.
Futures in Tokyo gained as much as 1.2 percent to the highest level since Oct. 23. Sales in China of cars, sport- utility vehicles and multipurpose vehicles climbed to 946,400 units in October as economic growth and stimulus measures spurred demand in the world’s top auto market so far this year.
“The strong data added to optimism that car sales in China will keep rising, leading to growth in rubber demand,” Hisaaki Tasaka, an analyst at commodity broker ACE Koeki Co. in Tokyo, said today. China is the world’s largest rubber consumer.
April-delivery rubber rose as much as 2.7 yen to 234.8 yen a kilogram ($2,610 a metric ton) on the Tokyo Commodity Exchange before trading at 234.3 yen at 11:07 a.m. local time. Prices have gained 72 percent this year.
China’s car sales in the first 10 months rose 45.2 percent to 8.19 million, according to the China Association of Automobile Manufacturers, which released the data yesterday after the close of trade in Tokyo. China’s government cut vehicle taxes and introduced subsidies in rural areas this year after vehicle demand plunged amid an economic slowdown.
Automakers including Toyota Motor Corp., the world’s largest, have raised global sales forecasts for this year partly because of growing demand in China.
Auto sales growth will continue next year, Yale Zhang, a Shanghai-based director at auto-consulting company CSM Asia, said yesterday. The government will probably extend stimulus measures that are scheduled to finish at the yearend, he said.
Stock Rally
Asian stocks extended a global rally, lifting the MSCI Asia Pacific Index for a third day. In New York, the Dow Jones Industrial Average climbed to a 13-month high yesterday after the Group of 20 nations agreed to maintain stimulus efforts.
The rally in global stocks boosted investor confidence that economic recovery will increase raw-material demand, Tasaka said.
January-deliver rubber on the Shanghai Futures Exchange added 0.8 percent to 19,200 yuan ($2,813) a ton at 9:39 a.m. local time. Prices were capped after the exchange said Nov. 6 that rubber stockpiles monitored by the bourse rose 3,784 tons to 120,697 tons, the highest level since November 2004.
Thursday, November 5, 2009
Rubber Gains After Oil Rallies, Thailand Forecasts Output Slump
Rubber Gains After Oil Rallies, Thailand Forecasts Output Slump
Nov. 5 (Bloomberg) -- Rubber gained for a second day as a rally in oil boosted the cost of making rival synthetic products used in tires and Thailand forecast a slump in output because of heavy rain.
Futures in Tokyo gained as much as 0.9 percent after crude oil jumped to a two-week high yesterday on a report showing supplies in the U.S., the world’s biggest energy consumer, unexpectedly declined. Rubber output in Thailand, the world’s biggest producer, will fall by at least 20 percent this year, the nation’s director-general of agriculture said yesterday.
April-delivery rubber rose as much as 2.1 yen to 230.5 yen a kilogram ($2,545 a metric ton) on the Tokyo Commodity Exchange and traded at 228.5 yen at 9:50 a.m. local time.
Thailand’s output “will not be more than 2.5 million tons” this year compared with 3.1 million tons last year, Somchai Charnnarongkul said at a conference in Ho Chi Minh City yesterday. Production may drop to between 2 million and 2.5 million tons, he said.
Thailand, Indonesia and Malaysia, the three biggest producers, suspended a plan agreed last year to pare exports after the global economic recovery restored demand, the International Rubber Consortium said last month.
Stockpiles held from last year means Thailand should export about 2.7 million tons this year, Somchai said.
Nov. 5 (Bloomberg) -- Rubber gained for a second day as a rally in oil boosted the cost of making rival synthetic products used in tires and Thailand forecast a slump in output because of heavy rain.
Futures in Tokyo gained as much as 0.9 percent after crude oil jumped to a two-week high yesterday on a report showing supplies in the U.S., the world’s biggest energy consumer, unexpectedly declined. Rubber output in Thailand, the world’s biggest producer, will fall by at least 20 percent this year, the nation’s director-general of agriculture said yesterday.
April-delivery rubber rose as much as 2.1 yen to 230.5 yen a kilogram ($2,545 a metric ton) on the Tokyo Commodity Exchange and traded at 228.5 yen at 9:50 a.m. local time.
Thailand’s output “will not be more than 2.5 million tons” this year compared with 3.1 million tons last year, Somchai Charnnarongkul said at a conference in Ho Chi Minh City yesterday. Production may drop to between 2 million and 2.5 million tons, he said.
Thailand, Indonesia and Malaysia, the three biggest producers, suspended a plan agreed last year to pare exports after the global economic recovery restored demand, the International Rubber Consortium said last month.
Stockpiles held from last year means Thailand should export about 2.7 million tons this year, Somchai said.
Wednesday, November 4, 2009
Prediction for 2014-2015
Slow output growth, demand rise to cause rubber shortage
Kochi: India may face a shortage of natural rubber (NR) by 2014-15, according to trade estimates. The apprehension flows from the current slow growth in the internal production of rubber and the sharp increase in domestic consumption. The trade says India would require 1.2 million tonnes of rubber by 2015, but the production is unlikely to exceed a million tonnes, given the current growth in production. The country achieved a 4.7 per cent rise in production, at 864,500 tonnes, in 2008-09 and consumption grew by 1.2 per cent to 871,720 tonnes.
Consumption has been higher than production for the past few years and the shortage is being met through imports. The average rate of increase in production is estimated at 3.5–4 per cent for the next five to six years.
During April–August this year, production fell 13 per cent to 273,575 tonnes, but consumption increased by 2.1 per cent to 376,350 tonnes. In April–September, production dropped by 12.4 per cent, while consumption rose by 2.5 per cent.
It is also estimated that India would require two million tonnes of NR by 2020.
The main reason for the low growth in production is slow rise in acreage in Kerala, where 92 per cent of India’s rubber is grown. There is a problem in getting vast areas of land for plantation crops like rubber; fresh planting is also low in Kerala. (BS)
http://www.business-standard.com/india/news/slow-output-growth-demand-rise-to-cause-rubber-shortage/375194/
Kochi: India may face a shortage of natural rubber (NR) by 2014-15, according to trade estimates. The apprehension flows from the current slow growth in the internal production of rubber and the sharp increase in domestic consumption. The trade says India would require 1.2 million tonnes of rubber by 2015, but the production is unlikely to exceed a million tonnes, given the current growth in production. The country achieved a 4.7 per cent rise in production, at 864,500 tonnes, in 2008-09 and consumption grew by 1.2 per cent to 871,720 tonnes.
Consumption has been higher than production for the past few years and the shortage is being met through imports. The average rate of increase in production is estimated at 3.5–4 per cent for the next five to six years.
During April–August this year, production fell 13 per cent to 273,575 tonnes, but consumption increased by 2.1 per cent to 376,350 tonnes. In April–September, production dropped by 12.4 per cent, while consumption rose by 2.5 per cent.
It is also estimated that India would require two million tonnes of NR by 2020.
The main reason for the low growth in production is slow rise in acreage in Kerala, where 92 per cent of India’s rubber is grown. There is a problem in getting vast areas of land for plantation crops like rubber; fresh planting is also low in Kerala. (BS)
http://www.business-standard.com/india/news/slow-output-growth-demand-rise-to-cause-rubber-shortage/375194/
Monday, November 2, 2009
rubber news-Rubber Slumps Most in a Month as Economic Recovery May Falter
Rubber Slumps Most in a Month as Economic Recovery May Falter
Nov. 2 (Bloomberg) -- Rubber slumped by the most in a month as a drop in U.S. consumer spending and the bankruptcy of CIT Group Inc. stoked concern that an economic recovery may falter, curbing demand for the commodity used in tires.
Futures in Tokyo fell as much as 3.4 percent, the largest loss since Sept. 24. New-York based CIT, a 101-year-old commercial lender, filed for bankruptcy on Nov. 1 to cut $10 billion in debt after the credit crunch dried up its funding and a U.S. bailout and debt exchange offer failed. Americans cut spending 0.5 percent in September, the first decline in five months, the Commerce Department reported Oct. 30.
“Investors reduced holdings of equities and commodities as they question a rosy scenario that global economic growth may accelerate,” Kazuhiko Saito, chief analyst at commodity broker Fujitomi Co. in Tokyo, said today by phone. “Rubber was sold together with oil and other industrial commodities.”
April-delivery rubber fell as much as 7.9 yen to 223.4 yen a kilogram ($2,483 a metric ton) on the Tokyo Commodity Exchange before trading at 223.8 yen at 10:17 a.m. local time. Prices gained 18 percent last month, the largest increase since July.
CIT, which filed the fifth-largest bankruptcy by assets, said it plans to exit quickly due to support from bondholders, who voted in favor of a so-called prepackaged plan. CIT listed $71 billion in assets and $64.9 billion in debt in a Chapter 11 filing in U.S. Bankruptcy Court in Manhattan.
Equities Decline
Asian stocks dropped, extending a 2.8 percent decline in the Standard & Poor’s 500 Index Oct. 30.
“People are starting to have doubts the U.S. recovery will continue,” said Tomochika Kitaoka, chief strategist in Tokyo at Mizuho Financial Group Inc.
Futures were also sold as a drop in crude oil to a two-week low cut the appeal of the commodity as an alternative to its synthetic rival made from petroleum, Saito said.
December-delivery crude fell as much as 44 cents, or 0.6 percent, to $76.56 a barrel in after-hours electronic trading on the New York Mercantile Exchange, its lowest intraday price since Oct. 15. It traded at $76.86 at 10:22 a.m. in Tokyo.
January-delivery rubber on the Shanghai Futures Exchange lost 2.1 percent to 18,940 yuan ($2,774) a ton at 9:23 a.m. local time.
Prices fell after the Shanghai exchange reported Oct. 30 that natural rubber stockpiles monitored by the bourse rose 6,230 tons to 116,913 tons, the highest level since November, 2004.
Nov. 2 (Bloomberg) -- Rubber slumped by the most in a month as a drop in U.S. consumer spending and the bankruptcy of CIT Group Inc. stoked concern that an economic recovery may falter, curbing demand for the commodity used in tires.
Futures in Tokyo fell as much as 3.4 percent, the largest loss since Sept. 24. New-York based CIT, a 101-year-old commercial lender, filed for bankruptcy on Nov. 1 to cut $10 billion in debt after the credit crunch dried up its funding and a U.S. bailout and debt exchange offer failed. Americans cut spending 0.5 percent in September, the first decline in five months, the Commerce Department reported Oct. 30.
“Investors reduced holdings of equities and commodities as they question a rosy scenario that global economic growth may accelerate,” Kazuhiko Saito, chief analyst at commodity broker Fujitomi Co. in Tokyo, said today by phone. “Rubber was sold together with oil and other industrial commodities.”
April-delivery rubber fell as much as 7.9 yen to 223.4 yen a kilogram ($2,483 a metric ton) on the Tokyo Commodity Exchange before trading at 223.8 yen at 10:17 a.m. local time. Prices gained 18 percent last month, the largest increase since July.
CIT, which filed the fifth-largest bankruptcy by assets, said it plans to exit quickly due to support from bondholders, who voted in favor of a so-called prepackaged plan. CIT listed $71 billion in assets and $64.9 billion in debt in a Chapter 11 filing in U.S. Bankruptcy Court in Manhattan.
Equities Decline
Asian stocks dropped, extending a 2.8 percent decline in the Standard & Poor’s 500 Index Oct. 30.
“People are starting to have doubts the U.S. recovery will continue,” said Tomochika Kitaoka, chief strategist in Tokyo at Mizuho Financial Group Inc.
Futures were also sold as a drop in crude oil to a two-week low cut the appeal of the commodity as an alternative to its synthetic rival made from petroleum, Saito said.
December-delivery crude fell as much as 44 cents, or 0.6 percent, to $76.56 a barrel in after-hours electronic trading on the New York Mercantile Exchange, its lowest intraday price since Oct. 15. It traded at $76.86 at 10:22 a.m. in Tokyo.
January-delivery rubber on the Shanghai Futures Exchange lost 2.1 percent to 18,940 yuan ($2,774) a ton at 9:23 a.m. local time.
Prices fell after the Shanghai exchange reported Oct. 30 that natural rubber stockpiles monitored by the bourse rose 6,230 tons to 116,913 tons, the highest level since November, 2004.
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