Spot rubber makes further gains

Spot rubber makes further gains
Kottayam: Spot rubber gained further on Thursday. According to observers, there was no selling pressure on any grade even at the closing levels and the prices firmed up on expectations that the immediate target is Rs 150 a kg for sheet rubber. The grade improved to Rs 129.25 from Rs 127.25 a kg though the volumes were unimpressive. The sentiments were also catalysed by the bullish domestic and international rubber futures.

Futures firm

RSS 4 firmed up with the December futures rising to Rs 131.84 (128.01); January to Rs 133.90 (130.09), February to Rs 135.50 (132.10) and March to Rs 137.91 (134.18) a kg on National Multi Commodity Exchange (NMCE). The December futures for RSS 3 closed at ¥249.4 (¥244.4) (Rs 130.79), January at ¥250 (¥247), February at ¥252.9 (¥248.2) and March at ¥254 (¥250) a kg during the day session on Tokyo Commodity Exchange (TOCOM). RSS 3 downed the shutters at Rs 130.48 (128.80) a kg on Singapore Commodity Exchange (SICOM). It's spot finished at Rs 129.02 (127.56) a kg at Bangkok. (BL)
http://www.thehindubusinessline.com/2009/12/04/stories/2009120452691600.htm

Global rubber output poised to dip
Kochi : Production of natural rubber in some of the major producing countries including India is likely to be hit in the coming months mainly due to climate change. This could worsen the global deficit that already recorded a 5.1 per cent fall during the 12 months ending October 2009.

Climate change

While acknowledging that climate change had accounted for a small dip in production, Mr N. Radhakrishnan, former President of Cochin Rubber Merchants Association, said that the Indian production was more vulnerable to shortage of skilled personnel to tap the rubber trees and low-yields from old trees that had outgrown their peak production period and needed to be re-planted.

Even as small holders would be able to tide over the shortage through in-house labour, and the large planters could stave off the crisis with their captive labour in their plantations, it was the middle level farmer with 5-25 acres who would be most impacted. While the coming months are seen as the most productive period for rubber plantations, things could be different this year, he added. (BL)
http://www.thehindubusinessline.com/2009/12/04/stories/2009120452601600.htm

Natural rubber prices double in a year
Kochi: The natural rubber (NR) prices have almost doubled in a year. The benchmark grade RSS-4 variety was quoted at Rs 128 a kg on Thursday compared with Rs 65 a kg on same day last year.

The rubber market is now poised to break all records despite good production this season. The local market follows its global peers resulting in a sharp increase in the prices in the futures trading.

The local market quoted Rs 76.5 a kg for RSS-4 on December 3, 2006 and Rs 92 a kg on the same day in 2007. Thursday’s price is one of the highest prices quoted; the highest price quoted was Rs 142 a kg on August 30, 2008.

A section of traders believe that the market may breach this record because of the rising demand, especially from the tyre manufacturing sector. This price rise in abnormal as the supply had improved in November.

According to Rubber Board estimates, production in November increased to 103,000 tonnes compared with 95,550 tonnes in the same month last year. Production is expected to be at its peak in this month due to the winter season and supply is expected to improve further. The board estimates also revealed that the total stock in the country increased to 247,000 tonnes. This is due to the sharp increase in imports and a drop in exports during April-November.

Experts said a strong appreciation in prices in all major global markets would make the domestic market bullish. Heavy rainfall and floods had affected production in Thailand and Indonesia, hence global prices were on a rise. Also, aggressive buying by China made the market a seller’s paradise, they said. (BS)
http://www.business-standard.com/india/news/natural-rubber-prices-double-inyear/378476/

Natural rubber production is on the upswing
KOCHI: The country's natural rubber production is on the upswing. The production has registered a marginal increase in November 2009 as compared to the same period last year as per provisional estimates.

Higher production in November has improved the overall rubber production trends in the country. The cumulative production for the period April to November has seen a 6.5% fall. For the April to October period the decline in rubber output was around 9%.

The improvement in production in the second half of the fiscal year was expected as October to January is the peak production season. Though the recent forecast by the Association of Natural Rubber Producing Countries (ANRPC) had indicated a fall in production in the country in November due to untimely rains, the provisional figures do not show such a fall. (ET)
http://economictimes.indiatimes.com/news/economy/agriculture/Natural-rubber-production-is-on-the-upswing/articleshow/5297023.cms