Mixed trend in rubber

Mixed trend in rubber
Kottayam: Spot rubber witnessed a mixed trend on Friday. Marginal recovery in domestic futures and covering purchases at lower levels saved the market from further falls while sheet rubber finished unchanged at Rs 131.50 amidst scattered transactions. RSS 5 and ISNR 20 recorded nominal gains though the remaining grades failed to move up possibly due to the absence of fresh buying in the main marketing centres. Futures improve

RSS 4 improved at its February futures to Rs 133.30 (132), March to Rs.135.15 (134.02), April to Rs 139.10 (138) and May to Rs 141.60 (140.09) a kg on National Multi Commodity Exchange (NMCE). RSS 3 firmed up to Rs 141.08 (139.59) a kg on Singapore Commodity Exchange (SICOM). But the grade (spot) slipped to Rs 143.52 (143.58) a kg at Bangkok. The February futures for RSS 3 closed at ¥262.7 (¥265) (Rs 134.29), March at ¥264.7 (¥263.9) and April at ¥268.5 (¥267.4 a kg during the day session on Tokyo Commodity Exchange.

Spot rates were (Rs/kg): RSS-4: 131.50 (131.50); RSS-5: 129 (128); ungraded: 126 (126); ISNR 20: 129.50 (129) and latex 60 per cent: 90 (90). (BL)

Apollo Tyres to hike prices in March quarter
NEW DELHI: Apollo Tyres (APLO.BO: Quote, Profile, Research) plans to raise tyre prices in the March quarter to maintain profit margins as raw material costs rise, a top official said on Friday.

Hardening natural rubber and crude oil prices have prompted Apollo and its peers to raise prices to protect margins in recent months. Apollo hiked prices by 5 percent in January and by 3 percent in November. (Reuter)
http://in.reuters.com/article/domesticNews/idINSGE60S0AX20100129

Rubber Snaps Five-Day Decline as Lower Prices May Lure Buyers

Rubber Snaps Five-Day Decline as Lower Prices May Lure Buyers
Tokyo, Jan. 29: Rubber gained for the first time in six days amid speculation lower prices may attract buying from China, the world’s largest consumer.

Futures in Tokyo recovered after reaching a one-month low yesterday. Rubber slumped 9.2 percent in the previous five days, heading for the worst monthly performance since September amid concern that the global economic recovery may falter as China may take more steps to slow growth.(Reuters)
http://www.bloomberg.com/apps/news?pid=20601012&sid=aORhqL3MXiTY

Rubber Posts Biggest Weekly Drop Since Dec. 11 as Stocks Slump Share Business

Rubber Posts Biggest Weekly Drop Since Dec. 11 as Stocks Slump Share Business
Jan. 29 (Bloomberg) -- Rubber dropped for a sixth day and posted the biggest weekly decline since Dec. 11 on speculation that the global economic recovery may falter and as shares fell.

Futures in Tokyo fell 5.2 percent this week and the price lost 0.6 percent this month, the first drop in four months. Asia stocks declined, with the regional benchmark posting its biggest weekly loss since February, on concern about Greece’s swelling deficit, U.S. unemployment and tightening measures by central banks in America, China and India.

“There were no aggressive buyers as concerns linger about the U.S. economic outlook and China’s monetary tightening,” Kazuhiko Saito, an analyst at commodity broker Fujitomi Co. in Tokyo, said today by phone. “Declining stocks in Asia and the U.S. dragged market sentiment lower.”

Rubber for July delivery fell 0.2 percent to close at 274.3 yen per kilogram ($3,047 a metric ton) on the Tokyo Commodity Exchange after gaining earlier as much as 3.2 percent.

May-delivery rubber on the Shanghai Futures Exchange added 0.2 percent to settle at 23,195 yuan ($3,397) a ton. Prices slumped yesterday to 22,760 yuan, the lowest level intraday level since Dec. 23.

The MSCI Asia Pacific Index slumped 1.8 percent to 116.96 at 4:07 p.m. in Tokyo, set for a 4.4 percent drop for the week. Standard & Poor’s 500 futures slipped 0.5 percent.

‘Getting Wary’

“People are getting wary about the outlook for the U.S. economy,” said Juichi Wako, a senior strategist at Tokyo-based Nomura Holdings Inc. “Central banks globally have little room to further loosen policies. We can’t expect excess liquidity to continue to flow into markets.”

China is expected to raise the deposit reserve requirement ratio for banks after the Lunar New Year holiday to curb surging liquidity, the Shanghai Securities News reported today, citing unidentified people. The vacation starts on Feb. 14 and lasts for a week.

In the cash market, shippers in Thailand, the world’s largest exporter, offered so-called RSS-3 grade rubber for March shipment at $3.10 per kilogram today, little changed from yesterday, Saito said. Offers were $3.16 on Jan. 25.

“Shippers were reluctant to cut prices substantially, despite a sell-off in the futures markets, after rain reduced the raw-material supply last month,” he said.

Rubber Snaps Five-Day Decline as Lower Prices May Lure Buyers

Rubber Snaps Five-Day Decline as Lower Prices May Lure Buyers
Jan. 29 (Bloomberg) -- Rubber gained for the first time in six days amid speculation lower prices may attract buying from China, the world’s largest consumer.
Futures in Tokyo recovered after reaching a one-month low yesterday. Rubber slumped 9.2 percent in the previous five days, heading for the worst monthly performance since September amid concern that the global economic recovery may falter as China may take more steps to slow growth.
China is expected to raise the deposit reserve requirement ratio for banks after the Lunar New Year holidays to curb surging liquidity, the Shanghai Securities News reported today, citing unidentified people. Japanese stocks fell, sending the Topix index toward its biggest weekly slump in almost four months after more Americans than estimated filed claims for unemployment benefits.
“Rubber was supported by speculation that China may add to stockpiles after the price drop and before the New Year holidays next month,” Kazuhiko Saito, an analyst at commodity broker Fujitomi Co. in Tokyo, said today by phone. “There were no aggressive buyers as concerns linger about the U.S. economic outlook and China’s monetary tightening.”
Rubber for July delivery gained 1 percent to 277.6 yen per kilogram ($3,086 a metric ton) on the Tokyo Commodity Exchange at 11:32 a.m. local time. Prices have added 0.5 percent this month after more than doubling last year on optimism that the global economic recovery will boost demand for the commodity used in tires.
‘Getting Wary’
May-delivery rubber on the Shanghai Futures Exchange added 0.6 percent to 23,310 yuan ($3,414) a ton at 10:35 a.m. local time. Prices slumped yesterday to 22,760 yuan, the lowest level intra-day level since Dec. 23.
The Standard & Poor’s 500 Index fell 1.2 percent in New York yesterday after a Labor Department report showed initial jobless applications decreased less than economists had estimated in the week ended Jan. 23. The Nikkei 225 Stock Average fell 1.5 percent to 10,258.96 at 10:54 a.m. in Tokyo.
“People are getting wary about the outlook for the U.S. economy,” said Juichi Wako, a senior strategist at Tokyo-based Nomura Holdings Inc. “Central banks globally have little room to further loosen policies. We can’t expect excess liquidity to continue to flow into markets.”
In the cash market, shippers in Thailand, the world’s largest exporter, offered so-called RSS-3 grade rubber for March shipment at $3.10 per kilogram today, little changed from yesterday, Saito said. Offers were $3.16 on Jan. 25.
“Shippers were reluctant to cut prices substantially, despite a sell-off in the futures markets, after rain reduced the raw material supply last month,” he said.

Rubber Declines to Four-Week Low on Chinese Demand Concern Share Business

Rubber Declines to Four-Week Low on Chinese Demand Concern Share Business

Jan. 27 (Bloomberg) -- Rubber declined to the lowest level in four weeks on concern demand for the commodity may weaken as China, the largest user, stepped up measures to slow economic growth. A stronger yen also curbed demand for the material.

Futures in Tokyo fell as much as 3.4 percent to 276.5 yen per kilogram ($3,098 a metric ton), matching the price reached on Dec. 30. Prices lost 6.1 percent in the previous three days, paring this month’s gain to 2.4 percent.

Chinese banks have begun restricting new loans, responding to a push by regulators to contain credit and curb the expansion of the world’s fastest-growing major economy. Concerns over slower growth increased after the International Monetary Fund said yesterday the global financial system remains “fragile,” with sovereign debt posing a risk to markets.

Bank of China Ltd. and China Construction Bank Corp. were told to restrict new loans, according to people familiar with the matter. Gross domestic product in China, the world’s third- biggest economy, expanded at the fastest pace since 2007 last quarter. Slowdown in the nation’s growth may curb vehicle sales, said Kazuhiko Saito, an analyst at Fujitomi Co. in Tokyo.

“The market may retreat further as concern about China’s monetary tightening reduced the risk appetite of investors,” he said by phone today.

July-delivery rubber declined 2.8 percent from its settlement yesterday to end at 278.20 yen per kilogram on the Tokyo Commodity Exchange. Prices more than doubled last year.

May-delivery rubber on the Shanghai Futures Exchange lost as much as 3.3 percent to 23,655 yuan ($3,465) a ton, the lowest level since Dec. 30, before settling at 23,955 yuan.

Stronger Yen

Futures in Tokyo also declined after the Japanese currency touched 89.14, the strongest in five weeks against the dollar. The yen rose 0.3 percent to 89.30 against the dollar at 3:38 p.m. in Singapore.

“The Japanese yen was sharply stronger amid worries over the health of U.S. economy,” Rewat Yenchai, an analyst at AGROW Enterprise Ltd., said by phone from Bangkok today. “That cut appeal for yen-dominated contracts.”

The yen gained on concern the global economic recovery will slow, increasing demand for Japan’s currency as a refuge. The dollar also came under pressure amid speculation the Federal Reserve will keep interest rates near zero before a report forecast to show U.S. business activity slowed this month.

The yen typically strengthens in times of financial turmoil as Japan’s trade surplus makes the currency attractive as it means the nation does not have to rely on overseas lenders.

“Risk aversion is strong globally, making it easy for the yen to be bought,” said Masahide Tanaka, a Tokyo-based senior strategist at Mizuho Trust & Banking Co.

Spot rubber turns weak
Kottayam: Physical rubber prices turned weak on Wednesday. Declines in the domestic and international rubber futures hammered the sentiments, while the market made all-round declines mainly on selling from dealers. Sheet rubber slid to Rs 133.50 from Rs 135 a kg and there were no fresh enquiries from the tyre sector. The global markets are on a technical correction, following profit-booking at higher levels. They are expected to bounce back during the second half of February on fresh buying, an analyst said.



Futures decline



The February futures surrendered gains to close at Rs 133.15 (136.29), March to Rs 135.27 (139.20), April to Rs 139.25 (143.21) and May to Rs 141.80 (146.18) a kg for RSS 4 on National Multi Commodity Exchange (NMCE). RSS 3 weakened to Rs 141.48 (142.62) a kg on Singapore Commodity Exchange (SICOM). The grade moved down to Rs 144.48 (145.77) a kg at Bangkok. The February futures RSS 3 declined to ¥267.8 (¥276) (Rs 138.65), March to ¥269.4 (¥276.4) and April to ¥270.1 (¥279) a kg for during the day session on Tokyo Commodity Exchange. Spot rates were (Rs/kg): RSS-4: 133.50 (135); RSS-5: 130 (130); ungraded: 126.50 (128); ISNR 20: 131 (132) and latex 60 per cent: 91 (91.50). (BL)



Tight supply to push global rubber prices
Global natural rubber supplies are tight and the outlook is bullish on favourable fundamentals, the Association of Natural Rubber Producing Countries said.

“Exporting countries are oriented towards ensuring the best price,” said Djoko Said Damardjati, the association’s secretary general, in a newsletter. "That will improve farm income and export earnings," he said. No producer nation “holds any buffer stock,” he said.



Prices doubled in 2009, the best performance since at least 1976, driven by optimism that demand was increasing as the world recovered from recession and as producers curbed supplies. The association includes Cambodia, China, India, Indonesia, Malaysia, Papua New Guinea, Singapore, Sri Lanka, Thailand and Vietnam. Total output represents about 94 per cent of global supply.(BS) http://www.business-standard.com/india/news/tight-supply-to-push-global-rubber-prices/383751/

Rubber Declines to Four-Week Low on Chinese Demand Concern

Rubber Declines to Four-Week Low on Chinese Demand Concern
Jan. 27 (Bloomberg) -- Rubber declined to the lowest level in four weeks on concern demand for the commodity may weaken as China, the largest user, stepped up measures to slow economic growth. A stronger yen also curbed demand for the material.
Futures in Tokyo fell as much as 3.4 percent to 276.5 yen per kilogram ($3,098 a metric ton), matching the price reached on Dec. 30. Prices lost 6.1 percent in the previous three days, paring this month’s gain to 2.4 percent.
Chinese banks have begun restricting new loans, responding to a push by regulators to contain credit and curb the expansion of the world’s fastest-growing major economy. Concerns over slower growth increased after the International Monetary Fund said yesterday the global financial system remains “fragile,” with sovereign debt posing a risk to markets.
Bank of China Ltd. and China Construction Bank Corp. were told to restrict new loans, according to people familiar with the matter. Gross domestic product in China, the world’s third- biggest economy, expanded at the fastest pace since 2007 last quarter. Slowdown in the nation’s growth may curb vehicle sales, said Kazuhiko Saito, an analyst at Fujitomi Co. in Tokyo.
“The market may retreat further as concern about China’s monetary tightening reduced the risk appetite of investors,” he said by phone today.
July-delivery rubber declined 2.8 percent from its settlement yesterday to end at 278.20 yen per kilogram on the Tokyo Commodity Exchange. Prices more than doubled last year.
May-delivery rubber on the Shanghai Futures Exchange lost as much as 3.3 percent to 23,655 yuan ($3,465) a ton, the lowest level since Dec. 30, before settling at 23,955 yuan.
Stronger Yen
Futures in Tokyo also declined after the Japanese currency touched 89.14, the strongest in five weeks against the dollar. The yen rose 0.3 percent to 89.30 against the dollar at 3:38 p.m. in Singapore.
“The Japanese yen was sharply stronger amid worries over the health of U.S. economy,” Rewat Yenchai, an analyst at AGROW Enterprise Ltd., said by phone from Bangkok today. “That cut appeal for yen-dominated contracts.”
The yen gained on concern the global economic recovery will slow, increasing demand for Japan’s currency as a refuge. The dollar also came under pressure amid speculation the Federal Reserve will keep interest rates near zero before a report forecast to show U.S. business activity slowed this month.
The yen typically strengthens in times of financial turmoil as Japan’s trade surplus makes the currency attractive as it means the nation does not have to rely on overseas lenders.
“Risk aversion is strong globally, making it easy for the yen to be bought,” said Masahide Tanaka, a Tokyo-based senior strategist at Mizuho Trust & Banking Co.

World Rubber Supply Tight, Price Outlook Bullish

World Rubber Supply Tight, Price Outlook Bullish

Jan. 26 (Bloomberg) -- Global natural rubber supplies are tight and the outlook is bullish on favorable fundamentals, the Association of Natural Rubber Producing Countries said.
“Exporting countries are oriented towards ensuring the best price,” said Djoko Said Damardjati, the association’s secretary general, in a newsletter. That will improve farm income and export earnings, he said. No producer nation “holds any buffer stock,” he said.
Prices doubled in 2009, the best performance since at least 1976, driven by optimism that demand was increasing as the world recovered from recession and as producers curbed supplies. The association includes Cambodia, China, India, Indonesia, Malaysia, Papua New Guinea, Singapore, Sri Lanka, Thailand and Vietnam. Total output represents about 94 percent of global supply.
“The statement is optimistic that prices could move up further,” said Umaporn Thepnuan, marketing official at Future Agri Trade Co. in Bangkok. Futures in Tokyo may climb to 350 yen per kilogram ($3,891 a ton) should they close above 303.8 yen, the highest end-session level since September 2008, she said, using price history as a guide.
Thailand, Indonesia and Malaysia, the three biggest growers, view the current price as appropriate and agreed to take steps to counter any negative trends, according to a joint statement after a meeting last week in Kuala Lumpur.
Tight Supply
The nations put on hold plans to curb exports as the economic recovery boosted prices and demand, the International Rubber Consortium Ltd., which represents growers and exporters, said Oct. 27. Supply was cut after prices fell to 99.8 yen a kilogram ($1,103 a metric ton) in December 2008, the lowest level since August 2002. The price has almost tripled since then to 284.6 yen a kilogram.
The industry is “passing through a situation of tight supply caused by a progressive decline in production and a marked rebound in demand,” Djoko said in the newsletter.
The association said it raised its prediction for output this year in Indonesia, the second-largest producer, to 2.77 million tons from 2.68 million tons. India’s production may total 853,000 tons, up from the previous estimate of 848,000 tons, it said. Vietnam may produce 770,000 tons, up from 680,000 tons, and exports will probably be 750,000 tons, it said, without giving estimates for other countries.
Total supply of natural rubber in association member countries declined 5.1 percent in 2009 to 8.7 million tons. The plantation area expanded to 7.13 million hectares at the end of 2009 from 7.02 million hectares a year earlier, it said.

Rubber Climbs for First Day in Three on Yen’s Decline, China
Jan. 26 (Bloomberg) -- Rubber advanced for the first time in three days as a weaker Japanese currency increased the appeal of yen-denominated contracts and on speculation China, the largest consumer, may step up purchases.
Futures in Tokyo jumped as much as 2.1 percent, rebounding from the three-week low reached yesterday. The yen declined after U.S. President Barack Obama’s endorsement of a second term for Federal Reserve Chairman Ben S. Bernanke boosted demand for higher-yielding currencies. China may increase purchases ahead of the Lunar New Year holidays next month, said Hisaaki Tasaka, an analyst at Tokyo-based commodity broker ACE Koeki Co.
“The market recovered as the yen’s rally stalled and as sales triggered by the U.S. bank plan subsided,” Tasaka said by phone today. “Focus is returning to fundamentals, including China’s activity ahead of the holidays.”
Rubber for June delivery rose as much as 6 yen to 292 yen per kilogram ($3,230 a metric ton) on the Tokyo Commodity Exchange and traded at 289.2 yen at 11:45 a.m. local time. The contract fell to 281.5 yen yesterday, its lowest since Jan. 4, after Obama last week called for investment limits on banks to help prevent another global financial crisis.
Rubber for July delivery, listed on the exchange today, traded at 292 per kilogram after opening at 290 yen.
May-delivery rubber on the Shanghai Futures Exchange climbed 0.5 percent to 24,710 yuan ($3,620) a ton at 10:45 a.m. local time. Prices recovered after slumping to a one-month low of 24,105 yuan on Jan. 22.
China Inventories
Natural rubber inventories grew 1,139 tons to 151,832 tons, the bourse said Jan. 22, based on a survey of 10 warehouses in Shanghai, Shandong, Yunnan, Hainan and Tianjin. That’s the most since November 2004.
“Rising stockpiles signal that Chinese buyers may be increasing rubber purchases,” ACE Koeki’s Tasaka said.
China’s week-long Lunar New Year holiday starts on Feb. 14 and precedes the peak-demand season. The nation surpassed the U.S. as the world’s largest car market last year, boosting demand for the commodity used in tires.
In the cash market, shippers in Thailand, the biggest exporter, are offering RSS-3 grade rubber for March shipment at $3.13 a kilogram, from last week’s peak of $3.25 reached Jan. 20, Tasaka said. Lower prices may also be attracting physical buying, he added.
Supplies in the global natural rubber market are tight and the fundamentals are favorable for prices, the Association of Natural Rubber Producing Countries said in a newsletter today.
The association estimated Indonesian output at 2.77 million metric tons in 2010, India’s at 853,000 tons and Vietnam’s at 770,000 tons.

Rubber Drops Most in 4 Months as Obama Plan Spurs Risk Aversion

Rubber Drops Most in 4 Months as Obama Plan Spurs Risk Aversion
Jan. 22 (Bloomberg) -- Rubber slumped by the most in four months on concern that investor demand will weaken after a U.S. proposal to restrict risk-trading spurred a rally in the yen and a sell-off in global stocks.
Futures in Tokyo tumbled as much as 5.8 percent, the most in intraday trading since Sept. 14. President Barack Obama called for limits on the trading activities of banks as a way to prevent another financial crisis. The yen rose to a one-month high against the dollar and Japan’s Nikkei 225 Stock Average lost 2.6 percent, erasing most of this year’s advance.
“Investors were cutting holdings of risk assets because of the proposed restrictions on U.S. financial institutions,” Kazuhiko Saito, an analyst at Tokyo-based broker Fujitomi Co., said today by phone. “Rubber was dragged down by losses in the equities and metals markets.”
Rubber for June delivery lost as much as 17.5 yen to 285.1 yen per kilogram ($3,158 a metric ton) before settling at 289.3 yen on the Tokyo Commodity Exchange. It fell 3.0 percent this week, the worst performance since the week ended Dec. 11. Prices have still gained 4.8 percent this month.
The yen climbed on concerns a U.S. proposal to limit risk- trading at banks will discourage demand for higher-yielding assets. A stronger Japanese currency cuts the appeal of yen- based futures as rubber trades globally in dollars.
Trading Curbs
Obama’s proposals, to be added to an overhaul of laws being considered by Congress, would prohibit banks from running proprietary trading operations solely for their own profit and sponsoring hedge funds and private equity funds.
“Trading restrictions at banks will enhance risk- aversion,” said Soichiro Mori, a Tokyo-based strategist at FXOnline Japan Co.
Rubber futures also declined amid speculation that China may change its fiscal and monetary policy after the nation’s economic growth accelerated, Saito at Fujitomi said.
China’s 10.7 percent growth in the fourth quarter ignited concern that the nations responsible for leading the world out of a recession will raise borrowing costs to keep their economies from overheating. China is the world’s largest user of natural rubber as the nation surpassed the U.S. to become the biggest auto market last year.
China’s statistics bureau omitted a reference to maintaining a “moderately loose monetary policy” and a “proactive fiscal policy” in its outlook section when it announced the fourth-quarter growth yesterday. The statement mirrored the same omission by Premier Wen Jiabao in a Jan. 19 report. Rubber for May delivery on the Shanghai Futures Exchange lost 3.2 percent to 24,550 yuan ($3,596) a ton at 2:49 p.m. local time
Spot rubber turns weak on global cues
Kottayam: Spot rubber turned weak on Friday. Sharp declines on the Tokyo rubber futures and the corresponding weakness in the domestic futures depressed the market mood to a great extent.The prices slipped on buyer resistance. Sheet rubber moved down to Rs 138 from Rs 139 a kg amidst scattered transactions. Major manufacturers continued to remain inactive and the under current appeared bearish.
Futures decline
The February futures for RSS 4 dropped to Rs 137.30 (139.80), March to Rs 140.23 (142.84), April to Rs 144.15 (146.68) and May to Rs 147.13 (149.30) a kg on National Multi Commodity Exchange (NMCE). RSS 3 slipped to Rs 145.16 (145.99) a kg on Singapore Commodity Exchange (SICOM). It closed weak at Rs 147.79 (147.96) a kg at Bangkok. The January futures for RSS 3 declined sharply to ¥279.4 (¥292) (Rs 142.82), February to ¥279 (¥291.9) and March to ¥283 (¥295.5on Tokyo Commodity .
Spot rates were (Rs/kg): RSS-4: 138 (139); RSS-5: 132 (133); ungraded: 127 (129); ISNR 20: 133 (134) and latex 60 per cent: 91 (91).(BL) http://www.thehindubusinessline.com/2010/01/23/stories/2010012353512200.htm

Rubber Drops Most in Six Weeks in Tokyo on China Growth Concern

Rubber Drops Most in Six Weeks in Tokyo on China Growth Concern
Jan. 22 (Bloomberg) -- Rubber dropped the most in six weeks on concern credit controls in China may slow economic growth in the world’s biggest consumer of the commodity.
Rubber for June delivery fell 8.3 yen, or 2.7 percent, to 294.3 yen per kilogram on the Tokyo Commodity Exchange at 9:16 a.m. local time. The contract, headed for its biggest one-day decline since Dec. 10, earlier fell as much as 3.4 percent to 292.2 yen, triggering a five-minute halt in trading.

Rubber Drops on Concern China Lending Curbs Will Reduce Demand

Rubber Drops on Concern China Lending Curbs Will Reduce Demand
Jan. 21 (Bloomberg) -- Rubber fell for the first time in three days on speculation that credit controls in China, the world’s biggest consumer for the commodity used to make tires, may slow economic growth.
Futures dropped as much as 2.2 percent after nearing a 16- month high yesterday. China will limit lending growth in the nation, Liu Mingkang, a banking regulator, said yesterday. The Asian nation is under pressure to keep its economy from overheating after government officials in November cited the risk of inflated asset prices.
“China says everything about commodities, including rubber as well as metals,” said Hiroyuki Kikukawa, general manager of research at Tokyo-based IDO Securities Co. “A firmer dollar and lower oil prices also put pressure on rubber futures.”
Rubber for June delivery lost as much as 6.6 yen to 294.2 yen per kilogram ($3,223 a metric ton) on the Tokyo Commodity Exchange and traded at 296.7 yen at 10:40 a.m. local time.
China, the world’s third-largest economy, replaced the U.S. as the world’s biggest auto market last year as government stimulus measures fuelled a 46 percent jump in vehicle sales. It will probably report fourth-quarter growth of 10.5 percent today, according to a survey of economists by Bloomberg News.
That would be the most in 21 months and follows an 8.9 percent expansion in the third quarter. The acceleration reflects an unprecedented $586 billion fiscal program and a credit-fueled investment boom that shielded China from the world recession.
Rubber futures touched 306.0 yen on Jan. 15, the highest level since Sept. 9, 2008. Prices rose the past two days after Thailand, Indonesia and Malaysia, the largest rubber producers, said they would monitor demand and supply and take steps to counter any decline in prices. The three countries account for about 70 percent of global output.
Crude oil for February delivery was little changed at $77.58 a barrel after losing 1.8 percent yesterday. A drop in oil prices often erodes the competitiveness of natural rubber against rival synthetic products made from petroleum.

Spot rubber rules steady

Kottayam: Spot rubber finished unchanged on Wednesday. Though the domestic futures continued to be in the grips of bears, physical prices sustained at current levels, an analyst said. Sheet rubber closed flat at Rs 139.50 a kg and there were no fresh enquiries from major consuming industries.

Futures weak

RSS 4 weakened with February futures slipping to Rs 141.65 (142.81), March to Rs 144.60 (145.57), April to Rs 148.59 (149.45) and May to Rs 151.62 (152.58) a kg on National Multi Commodity Exchange (NMCE). RSS 3 firmed up to Rs 147.07 (144.61) a kg on Singapore Commodity Exchange (SICOM). The grade moved up to Rs 147.37 (145.50) a kg at Bangkok. On the Tokyo Commodity Exchange, January futures improved to ¥293 (¥291.7) (Rs 148.08), February to ¥291.8 (¥289.3) and March to ¥294.5 (¥291.2) a kg for RSS 3 during the day session on Tokyo Commodity Exchange (TOCOM). Spot rates were (Rs/kg): RSS-4: 139.50 (139.50); RSS-5: 133.50 (133.50); ungraded: 130 (130); ISNR 20: 133.50 (133.50) and latex 60 per cent: 91 (91). (BL)

Global rubber shortfall unlikely to impact India

Global rubber shortfall unlikely to impact India'
Kottayam: The estimated shortfall in global production during 2009-10 may not affect the domestic market as there is enough stock in the country, said Mr Sajen Peter, Chairman of Rubber Board.

During April-October 2009, rubber production in the country fell 9.4 per cent compared with the same period a year ago, according to statistics available.

According to revised estimates, the total production during 2009-2010 would be 8,40,000 tonnes. It was earlier estimated that the rubber production during the same period would be 8,67,000 tonnes. The unexpected change in weather, the higher production base of 2008, attempts to retain existing old and uneconomic plantations are some of the reasons for the sluggish production, Mr Peter told Business Line. (BL) http://www.thehindubusinessline.com/2010/01/20/stories/2010012052491800.htm
Spot rubber improves on global cues
Kottayam: Spot rubber prices strengthened on Tuesday. According to sources, the prices improved in tune with the gains in the international markets though the domestic futures were sluggish on NMCE. Sheet rubber moved up marginally to Rs 139.50 from Rs 139 a kg on covering purchases. Sellers stayed away as arrivals continued to be low. There were no fresh enquiries from the tyre sector and the trend appeared mixed as RSS 5 closed unchanged amidst thin volumes.
Futures weak
The February futures for RSS 4 weakened to Rs 142.85 (143.53), March to Rs 145.50 (146.41), April to Rs 149.49 (150.09) and May to Rs 152.60 (153.39) a kg on National Multi Commodity Exchange (NMCE). On the Tokyo Commodity Exchange, RSS 3 improved with the January futures rising to ¥291.7 (¥286.5) (Rs 147.20), February to ¥289.3 (¥287.6) and March to ¥291.2 (¥288) a kg during the day session. RSS 3 increased to Rs 144.61 (144.02) a kg on Singapore Commodity Exchange (SICOM). The grade closed firm at Rs 145.50 (143.44) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 139.50 (139); RSS-5: 133.50 (133.50); ungraded: 130 (129.50); ISNR 20: 133.50 (133) and latex 60 per cent: 91 (90). (BL) http://www.thehindubusinessline.com/2010/01/20/stories/2010012052431800.htm
Top rubber producers eye prices, woo Vietnam
KUALA LUMPUR: The world's top three rubber producers are weighing plans for a fund to regulate supply flows of the commodity to markets, but stopped short of action to rein in rising prices, a Malaysian minister said on Tuesday.

As tyre grades hover near 56-year highs, producers Thailand, Indonesia and Malaysia, which account for 70 percent of global output, have no plans to fix a new threshold price for rubber, Bernard Dompok, Malaysia's commodities minister, told reporters.(Reuters) http://in.reuters.com/article/domesticNews/idINSGE60I05W20100119

Thailand, Indonesia ‘Comfortable’ on Rubber Price

Thailand, Indonesia ‘Comfortable’ on Rubber Price

Jan. 19 (Bloomberg) -- Thailand, Indonesia and Malaysia, the world’s three biggest rubber producers, view the current price as appropriate and agreed to take steps to counter any negative trends.
“Everyone is very happy,” Bernard Dompok, Malaysia’s plantation industries and commodities minister, said today after meeting counterparts in Kuala Lumpur. “Current prices of rubber are conducive for production of more rubber.”
Futures more than doubled last year, the best performance since at least 1976, on optimism that a recovery from the worst global recession since World War II would fuel demand for tires and gloves. The three countries will continue to monitor supply and demand and take suitable measures to counter negative price trends, according to a joint statement after the meeting.
“This would have a positive psychological effect on the market,” Rewat Yenchai, an analyst at AGROW Enterprise Ltd., said by phone from Bangkok. “It will help reduce price volatility and limit the downward fall in prices.”
Before the meeting, Apichart Jongskul, secretary-general of Thailand’s Office of Agricultural Economics, had said the three nations may agree at today’s session to support prices if they fall to less than $2,600 a metric ton. Still, Dompok said that “we don’t see the need to look at the threshold prices.”
Thailand, Indonesia and Malaysia harvest about 7 million tons a year, 70 percent of world natural-rubber output.
Global Supply
When Vietnam joins the three countries in the International Tripartite Rubber Council, total production would increase to 76 percent of global supply, while exports will rise to 93 percent from 84 percent, Dompok said.
“Vietnam, being the fifth-largest producer of natural rubber in the world, would strengthen the cooperation among major natural rubber producers,” he added.
The three countries also do not see the need to re-impose export cuts “for the moment,” Dompok told reporters.
The supply-management program run by the three countries had contributed to the improvement in prices, said Bayu Krisnamurthi, Indonesia’s Deputy Agriculture Minister.
Last year, the three producers put on hold plans to curb exports as the global economic recovery boosted prices and demand, the International Rubber Consortium Ltd., which represents growers and exporters, said Oct. 27.
Export Cut
The export cut was implemented after prices fell to 99.8 yen a kilogram ($1,098 a metric ton) in December 2008, the lowest level since August 2002.
Yen-priced futures climbed as much as 2.8 percent to 303.1 yen a kilogram on the Tokyo Commodity Exchange today, nearing a 16-month high of 306 yen on Jan. 15, before ending at 299 yen.
“We will monitor the market very closely,” Krisnamurthi said. “Our main interest is to ensure the rubber prices are attractive to small farmers as well as to others in the industry.”
Rubber will probably maintain an upward trend as key producers showed no intention of increasing shipments, Takaki Shigemoto, an analyst at research and investment company JSC Corp., said by phone from Tokyo.

Rubber producers seek to stabilise sky-high prices

Rubber producers seek to stabilise sky-high prices
KUALA LUMPUR, Jan 18: A spike in rubber prices towards their strongest level in more than 50 years may not be sustainable and key producers are looking for ways to prevent a repeat of a brutal correction more than a year ago.
Cash rubber has been traded above $3 a kg in January, within sight of a 56-year peak around $3.25 struck in the middle of 2008 on an oil-driven rally in Tokyo futures JRUc6 and tight supplies in the three main producers. (Reuters) http://in.reuters.com/article/domesticNews/idINSGE60H0DZ20100118

Rubber Climbs to 16-Month High as Producers Study Support Plan

Rubber Climbs to 16-Month High as Producers Study Support Plan
Jan. 14 (Bloomberg) -- Rubber advanced to the highest level in 16 months as a rally in global stocks raised speculation that the economic recovery may boost demand and as Thailand, Indonesia and Malaysia studied a plan to support prices.
Futures in Tokyo increased as much as 2.6 percent to the highest level since Sept. 10, 2008. Asian stocks gained after an Australian report showed employment rose three times more than economists forecast, spurring demand for riskier assets. The yen weakened against higher-yielding currencies, boosting contracts.
“The positive economic data boosted investor confidence in recovery, leading to purchases of industrial raw materials,” Hisaaki Tasaka, an analyst at Tokyo-based commodity broker ACE Koeki Co., said today by phone.
Rubber for June delivery gained as much as 7.8 yen to 304.4 yen per kilogram ($3,322 a metric ton) on the Tokyo Commodity Exchange before settling at 303.8 yen. The contract has gained about 10 percent this month.
The yen weakened after the Australian statistics bureau said the number of people employed rose 35,200 in December from November. The median estimate of economists surveyed by Bloomberg was for an increase of 10,000. The jobless rate fell to 5.5 percent from a revised 5.6 percent.
The MSCI Asia Pacific Index advanced 1.3 percent to 126.23 as of 3:39 p.m. in Tokyo. The gauge has surged 45 percent in the past year amid signs of recovery in the region’s economies, led by China.
Thai Shippers
Thailand, Indonesia and Malaysia, the world’s three biggest rubber producers, are drawing up a plan to support prices should they decline to less than $2,600 a metric ton and plan a ministerial meeting Jan. 19 in Kuala Lumpur.
Indonesia and Thailand have agreed in principle to the plan, which may involve buying and stockpiling rubber if it falls to less than level, according to Apichart Jongskul, secretary- general of Thailand’s Office of Agricultural Economics.
Thailand may miss output forecasts for rubber this year because of dry weather caused by an El Nino event, Apichart said yesterday. Production may be 3.1 million tons, compared with the 3.33 million estimated earlier, he said.
Thai rubber estates would be expanded by 1 million rai (395,369 acres) from 17 million rai between this year and 2012, Apichart said yesterday. The government plans to spend 11.4 billion baht ($346 million) on the program, he said.
Shippers in Thailand, the world’s largest exporter, have raised offers for RSS-3 grade rubber for February-March shipment to $3.10 a kilogram from $3.05 on Jan. 12, Tasaka said.
“Shippers raised offers as they expect Chinese buying will pick up before the New Year holiday,” he said. China’s Lunar New Year break will start Feb. 14 and last for a week.
Rubber for May delivery on the Shanghai Futures Exchange rose 1.1 percent to 25,725 yuan ($3,768) a ton at 2:48 p.m. local time. The contract advanced to 26,170 yuan on Jan. 11, the highest level since July 2008.

Campco to buy rubber from 6 centres

Campco to buy rubber from 6 centres
Mangalore: The Central Arecanut and Cocoa Marketing and Processing Cooperative (Campco) Ltd is all set to enter the rubber business by starting rubber procurement in six centres this month.

The cooperative has got licences from the Rubber Board to operate in six centres including two in Karnataka and four in Kerala.

Mr S.R. Rangamurthy, President of Campco, told Business Line that the cooperative will enter the rubber business from this month. To begin with, the cooperative will procure rubber at its centres in Sullia and Puttur in Karnataka, and Mulleriya, Bandadka, Ponkunnam and Thodupuzha in Kerala.

The cooperative had sought permission from the Rubber Board to operate in 10 centres in these two States. (BL) http://www.thehindubusinessline.com/2010/01/13/stories/2010011353361800.htm

Mixed trend in rubber
Kottayam: Spot rubber witnessed a mixed mood on Tuesday. Sharp gains in the Japanese indices helped major grades to finish in the positive zone. A bearish move in the domestic futures took the steam out of the market during closing hours but sheet rubber improved to Rs 140 from Rs 139 on better demand. Volumes were limited as the major consuming industries stayed inactive though most of the players were expecting the raw material to register further highs. The undercurrent was bullish.

Futures weak

The January futures weakened to Rs 141.51 (143.86), February to Rs 144.42 (146.49), March to Rs 147.36 (149.40) and April to Rs 151.29 (152.85) a kg for RSS 4 on Natural Multi Commodity Exchange (NMCE). RSS 3 flared up at its January futures to ¥289.5 (¥281.5) (Rs 144.10), February to ¥289.8 (¥280.8), March to ¥291.8 (¥283.5), April to ¥294.6 (¥286.2), May to ¥296.9 (¥288.7) and June to ¥299.9 (¥291.7) a kg during the day session on Tokyo Commodity Exchange. RSS 3 (spot) closed firm at Rs 140.30 (139.84) a kg at Bangkok. The grade increased to Rs 141.05 (138.48) a kg on Singapore Commodity Exchange (SICOM).

Spot rates were (Rs/kg): RSS-4: 140 (139); RSS-5: 133.50 (133); ungraded: 129 (129); ISNR 20: 132.50 (132) and latex 60 per cent: 87 (87). (BL)

Rubber Slumps From 16-Month High After China Restrains Lending
Tokyo Jan. 13: Rubber fell from a 16-month high after China, the world’s top consumer, raised bank-reserve requirements to curb a credit boom and prevent the economy from overheating.

Futures in Tokyo, which earlier reached the highest level since Sept. 12, 2008, fell after the unexpected shift by China’s central bank to curb lending, which may foreshadow higher interest rates and a relaxation in the yuan’s peg to the dollar.(Bloomberg) http://www.bloomberg.com/apps/news?pid=20601012&sid=a4ZcuNc_O05w



REFILE-INTERVIEW-Top rubber producers want to halt rally
KUALA LUMPUR: The world's top rubber producers fear cash prices of the commodity have gone too high and may soon take steps to hold prices at a "reasonable level" of $2.6 per kilogram, a top industry official said on Tuesday.

Top producer Thailand may take the first step and release at least 300,000 tonnes of rubber held in reserves to moderate prices, said Djoko Said Damardjati, secretary general of the Association of Natural Rubber Producing Countries (ANRPC).

"Thailand has asked (the other two producers, Indonesia and Malaysia) to consider increasing supplies and impose higher export levies," Damardjati, who is often consulted by these governments, told Reuters in an interview. (Reuters) http://in.reuters.com/article/domesticNews/idINSGE60B00G20100112

Thailand to Expand Rubber Estates 6% to Meet Surge in Demand

Thailand to Expand Rubber Estates 6% to Meet Surge in Demand
Jan. 14 (Bloomberg) -- Thailand, the world’s largest rubber producer and exporter, plans to expand the area planted to the crop by about 6 percent over the next three years to meet a projected increase in global demand.
Plantations will be expanded by 1 million rai (395,369 acres) from 17 million rai between this year and 2012, Apichart Jongskul, secretary-general of the Office of Agricultural Economics, said in an interview. The government plans to spend 11.4 billion baht ($346 million) on the program, he said.
Rubber more than doubled last year, the best performance since at least 1976, amid investor optimism that a recovery from the worst global recession since World War II will boost demand for tires. Yen-denominated futures in Tokyo climbed today to the highest level in 16 months.
“The expansion plan is driven by attractive global prices, coupled with increasing demand,” Apichart said late yesterday. The plantation plan, recently endorsed by the government’s Natural Rubber Policy Committee -- of which Apichart is a member -- also requires cabinet approval.
Futures on the Tokyo Commodity Exchange gained as much as 2.5 percent to 304.1 yen a kilogram ($3,327 a metric ton) today, boosted by a weaker yen. Prices have gained about 10 percent this year, extending 2009’s advance of 103 percent.
Global Growth
Global usage of natural and synthetic rubber is forecast to reach 30.4 million metric tons by 2019 from 23.9 million this year, according to the International Rubber Study Group. Worldwide natural-rubber output may total 14 million tons in 2019, from 10.4 million tons this year, the group said Dec. 18.
Thailand may produce 3.1 million tons this year, lower than the 3.3 million tons estimated earlier because of dry weather caused by an El Nino weather pattern. Exports this year may rise to 2.9 million tons from 2.7 million tons, according to a forecast from the Office of Agricultural Economics.
Natural-rubber demand is expected to increase as the price of its synthetic rival, which is made from naphtha, increases in tandem with the cost of crude oil, said Apichart. The mix of synthetic to natural rubber in tires may shift to a 50/50 share in future, from about 60/40 at present, he added.
The government will use the funds to provide farmers with rubber saplings and low-interest credit, Apichart said. Rubber trees typically take about eight years to mature and start producing latex.
About 70 percent of the expansion will be in the nation’s northeast, with an additional 20 percent in the north, Apichart said. Most of Thailand’s rubber is cultivated in the south at present. The spread may help distribution to neighboring countries, he said.

Spot rubber prices improve

Spot rubber prices improve

Kottayam: Physical rubber prices improved on Monday. Moderate gains in the domestic rubber futures on NMCE catalysed the sentiments and the market made all-round gains mainly on speculative buying coupled with marginal short-covering.

Sheet rubber moved up to Rs 139 from Rs 138 a kg but the volumes continued to be low lacking genuine consumer based buying on the grade.

Futures firm

The January futures firmed up to Rs 143.95 (141.01), February to Rs 146.65 (144.17), March to Rs 149.50 (146.98) and April to Rs 153 (150.45) a kg for RSS 4 on Natural Multi Commodity Exchange (NMCE). RSS 3 increased to Rs 138.48 (137.47) a kg on Singapore Commodity Exchange (SICOM). The grade (spot) closed at Rs 139.84 (139.49) a kg at Bangkok. The Tokyo Commodity Exchange (TOCOM) remained closed on account of ‘Coming of Age Day '

Spot rates were (Rs/kg)”: RSS-4: 139 (138); RSS-5: 133 (131.50); ungraded: 129 (128); ISNR 20: 132 (131) and latex 60 per cent: 87 (87). (BL)
Decision soon on raising subsidy for rubber
Kottayam: The Government is considering to raise the subsidy given to growers for cultivating rubber and a decision would be made soon, according to the Union Minister of State for Commerce and Industry, Mr Jyotiraditya Scinda.

He was addressing presspersons after inaugurating the Web-based Distance Diagnostic Information System ‘Rubber Clinic' to help growers tackle diseases and pests attacks on crop.

About 15 lakh workers are engaged in the plantation sector and more welfare measures should be introduced for them, he said, adding that in a changing situation, small growers will have to improve quality of the products.

The growers' representation on the Board should be increased. (BL) http://www.thehindubusinessline.com/2010/01/12/stories/2010011251251600.htm


Natural rubber imports rise 118% in April-December
Natural rubber (NR) imports during April-December period of the current financial year increased 118 per cent to touch 138,486 tonnes compared with 63,452 tonnes in the same period last year. However, the sharp rise in imports occured only during the first half of the current financial year, as only 4,890 tonnes were added in December, according to the data released by the Rubber Board. (BS) http://www.business-standard.com/india/news/natural-rubber-imports-rise-118-in-april-december/382396/

Rubber Climbs to 16-Month High as Chinese Demand May Increase
Jan. 12: Rubber advanced to the highest level in 16 months as rising car sales in China, the world’s largest automobile consumer, stoked speculation that demand for the raw material used in tires will keep growing.

Futures in Tokyo gained as much as 2.8 percent to the highest level since Sept. 12, 2008. China supplanted the U.S. as the world’s largest auto market after its 2009 vehicle sales jumped 46 percent, ending more than a century of American dominance, data from the China Association of Automobile Manufacturers showed yesterday. (Bloomberg) http://www.bloomberg.com/apps/news?pid=20601012&sid=aKJDp.wdPmE8

Rubber Slumps From 16-Month High After China Restrains Lending

Rubber Slumps From 16-Month High After China Restrains Lending
Jan. 13 (Bloomberg) -- Rubber fell from a 16-month high after China, the world’s top consumer, raised bank-reserve requirements to curb a credit boom and prevent the economy from overheating.
Futures in Tokyo, which earlier reached the highest level since Sept. 12, 2008, fell after the unexpected shift by China’s central bank to curb lending, which may foreshadow higher interest rates and a relaxation in the yuan’s peg to the dollar.
“China’s move had an impact on overall commodities,” Kazuhiko Saito, chief analyst at commodity broker Fujitomi Co. in Tokyo, said today by phone. Metals, including copper, zinc and nickel, slumped together with crude oil futures.
Rubber for June delivery lost as much as 9.5 yen to 290.4 yen per kilogram ($3,185 a metric ton) on the Tokyo Commodity Exchange and traded at 293.8 yen at 9:39 a.m. local time. The contract earlier touched 301.2 yen.
Crude oil in New York fell 0.9 percent to $80.04 a barrel, declining for a third day. The price slumped 2.1 percent yesterday, the biggest one-day slump since Dec. 9. A drop in oil prices often erodes the competitiveness of natural rubber against rival synthetic products made from petroleum.
The People’s Bank of China raised the proportion of deposits that banks must set aside as reserves by 50 basis points starting Jan. 18, announcing the decision yesterday after the close of rubber trading in Tokyo. Economists hadn’t anticipated the move until at least April, the median of 11 forecasts in a Bloomberg News survey showed last week.
Rubber for May delivery on the Shanghai Futures Exchange fell 3.3 percent to 25,035 yuan ($3,667) a ton at 9:03 a.m. local time. The contract touched 26,170 yuan on Jan. 11, the highest level since July 2008.
Auto Sales
China supplanted the U.S. as the world’s largest auto market after its 2009 vehicle sales jumped 46 percent, ending more than a century of American dominance, data from the China Association of Automobile Manufacturers showed on Jan. 11.
Sales of passenger cars, buses and trucks in China rose to 13.6 million last year, the fastest pace in at least 10 years, according to the China Association of Automobile Manufacturers. In the U.S., sales slumped 21 percent to 10.4 million, the fewest since 1982, according to Autodata Corp.
China’s vehicle sales have surged since 1999 as economic growth averaging more than 9 percent a year helped automakers including Volkswagen AG compensate for slumping demand in the U.S. and Europe. The market will likely remain the world’s largest, according to Booz & Co., which advises automakers.

Rubber Advances to 16-Month High as Chinese Demand May Expand

Rubber Advances to 16-Month High as Chinese Demand May Expand
Jan. 12 (Bloomberg) -- Rubber advanced to the highest level in 16 months as rising car sales in China, the world’s largest automobile consumer, stoked speculation that demand for the raw material used in tires will keep growing.
Futures in Tokyo gained as much as 3 percent to the highest level since Sept. 12, 2008. China supplanted the U.S. as the world’s largest auto market after its 2009 vehicle sales jumped 46 percent, ending more than a century of American dominance, data from the China Association of Automobile Manufacturers showed yesterday.
“Chinese rubber demand will keep growing as car sales in the country are forecast to rise further to around 15 million units this year,” Takaki Shigemoto, an analyst at research and investment company JSC Corp. in Tokyo, said today by phone. “Rubber producers may fail to catch up with rising demand.”
Rubber for June delivery rose as much as 8.7 yen to 300.4 yen a kilogram ($3,261 a metric ton) on the Tokyo Commodity Exchange before settling at 299.9 yen. Prices extended last week’s 5.7 percent rally, the biggest increase since the week ended Dec. 18. The market was closed yesterday for a public holiday.
China’s sales of passenger cars, buses and trucks rose to 13.6 million last year, the fastest pace in at least 10 years, according to the China Association of Automobile Manufacturers. In the U.S., sales slumped 21 percent to 10.4 million, the fewest since 1982, according to Autodata Corp.
China’s vehicle sales have surged since 1999 as economic growth averaging more than 9 percent a year has helped automakers including General Motors Co. and Volkswagen AG compensate for slumping demand in the U.S. and Europe. The market will likely remain the world’s largest, according to Booz & Co., which advises automakers.
Thai Shippers
Shippers in Thailand, the world’s largest exporter, have raised offers for RSS-3 grade rubber for February-March shipment to $3.05 a kilogram from $2.96-$3.00 on Jan. 8, Shigemoto said. The increase reflected a rally in the futures market, he added.
Rubber output from Thailand, the world’s largest producer, may increase as much as 5 percent this year, while exports remain level amid stronger competition, according to forecasts from the Thai Rubber Association.
Output is estimated at 3 million metric tons in 2010, Luckchai Kittipol, the association’s president, said in a Web site statement. Still, exports may be steady at about 2.7 million tons, Piyaporn Saelim, the association’s manager, said yesterday from the southern province of Songkhla.
Rubber for May delivery on the Shanghai Futures Exchange rose as much as 1.5 percent to 26,100 yuan ($3,823) a ton before settling at 25,890 yuan. The contract rose yesterday to 26,170 yuan, the highest level since July 2008.
Natural-rubber stockpiles monitored by the Shanghai exchange increased 1,785 tons to 146,333 tons, the bourse said Jan. 8. It was the highest level since November 2004.
Inventories may increase further as buyers in China tend to step up raw-material purchases before the new year holiday, Shigemoto at JSC said. China’s Lunar New Year break will start Feb. 14 and last for a week.

Rubber Climbs to 16-Month High as Chinese Demand May Increase

Rubber Climbs to 16-Month High as Chinese Demand May Increase
Jan. 12 (Bloomberg) -- Rubber advanced to the highest level in 16 months as rising car sales in China, the world’s largest automobile consumer, stoked speculation that demand for the raw material used in tires will keep growing.
Futures in Tokyo gained as much as 2.8 percent to the highest level since Sept. 12, 2008. China supplanted the U.S. as the world’s largest auto market after its 2009 vehicle sales jumped 46 percent, ending more than a century of American dominance, data from the China Association of Automobile Manufacturers showed yesterday.
“Chinese rubber demand will keep growing as car sales in the country are forecast to rise further to around 15 million units this year,” Takaki Shigemoto, an analyst at research and investment company JSC Corp. in Tokyo, said today by phone. “Rubber producers may fail to catch up with rising demand.”
Rubber for June delivery rose as much as 8.1 yen to 299.8 yen a kilogram ($3,259 a metric ton) on the Tokyo Commodity Exchange before trading at 296.9 yen at 10:52 a.m. local time. Prices extended last week’s 5.7 percent rally, the biggest increase since the week ended Dec. 18. The market was closed yesterday for a public holiday.
China’s sales of passenger cars, buses and trucks rose to 13.6 million last year, the fastest pace in at least 10 years, according to the China Association of Automobile Manufacturers. In the U.S., sales slumped 21 percent to 10.4 million, the fewest since 1982, according to Autodata Corp.
China’s vehicle sales have surged since 1999 as economic growth averaging more than 9 percent a year has helped automakers including General Motors Co. and Volkswagen AG compensate for slumping demand in the U.S. and Europe. The market will likely remain the world’s largest, according to Booz & Co., which advises automakers.
Shanghai Rubber
Rubber for May delivery on the Shanghai Futures Exchange rose as much as 1.1 percent to 25,980 yuan ($3,806) a ton before trading at 25,735 yuan at 9:25 a.m. local time. The contract rose yesterday to 26,170 yuan, the highest level since July 2008.
Natural-rubber stockpiles monitored by the Shanghai exchange rose 1,785 tons to 146,333 tons, the bourse said Jan. 8. It was the highest level since November 2004.
Inventories may increase further as buyers in China tend to step up raw-material purchases before the new year holiday, Shigemoto at JSC said. China’s Lunar New Year break will start Feb. 14 and last for a week.
Rubber output from Thailand, the world’s largest producer, may increase as much as 5 percent this year, while exports remain level amid stronger competition, according to forecasts from the Thai Rubber Association.
Output is estimated at 3 million metric tons in 2010, Luckchai Kittipol, the association’s president, said in a Web site statement. Still, exports may be steady at about 2.7 million tons, Piyaporn Saelim, the association’s manager, said yesterday from the southern province of Songkhla.

Rubber Futures in Tokyo Rise to 16-Month High on China Outlook
Jan. 12 (Bloomberg) -- Rubber futures in Tokyo advanced as much as 2.7 percent to a 16-month high on speculation that demand from China will increase.
The June-delivery contract rallied to 299.5 yen per kilogram on the Tokyo Commodity Exchange before trading at 298.4 yen at 9:10 a.m. local time.

China’s Rubber Futures Jump to Highest in More Than 17 Months

China’s Rubber Futures Jump to Highest in More Than 17 Months
By Bloomberg News
Jan. 11 (Bloomberg) -- China’s natural rubber futures climbed as much as 2 percent to 25,860 yuan ($3,788) a metric ton, the highest level since July 31, 2008, on expectations the country’s demand for the material used in tires and gloves will increase.

Marginal dip in Dec rubber production
Midway through the peak period, rubber production dipped marginally by 2 per cent to 98,000 tonnes in December against 1.00225 lakh tonnes last year.

However, with industrial recovery firmly under way, rubber consumption remains robust, growing 17 per cent to 79,500 tonnes.

China ups demand

Preliminary indications show severe slippage in Malaysia's rubber production, and India is likely to become the world's third-largest producer of natural rubber after Thailand and Indonesia, Rubber Board sources said.

India has overtaken the US to emerge the world's second-largest rubber consumer after China. The surge in China's rubber consumption has created major production/consumption mismatch in global markets and prices remain firm.

Cumulative rubber production during the first nine months of the current fiscal was down 7 per cent to 6.289 lakh tonnes (6.76 lakh tonnes), while cumulative consumption was up 5 per cent to 6.94315 lakh tonnes (6.61955 lakh tonnes).

The chances of making up for the production shortfall remain dim in India in the midst of the peak production period. (BL) http://www.thehindubusinessline.com/2010/01/11/stories/2010011150281200.htm

Commodity Trends: Plantation crops remain bullish
Plantation crops have witnessed a bullish trend in 2009 and natural rubber was a leader in that pack. TOCOM rubber futures are expected to climb back to 2008 peak levels while tea, cardamom and coffee prices are already ruling high.

The individual auction average price of cardamom crossed Rs 1,000 a kg for the first time at Bodinayakannur on Sunday. The price reached Rs 1,025.79 a kg at the auction held by the Idukki District Spices Marketing and Processing Company. Another record was also last week when a lot of 9mm capsules fetched the highest-ever price of Rs 1,506.50 a kg at the auction conducted by MAS Enterprises at Vandamettu, Kerala. Another lot was sold at Rs 1,500 a kg. (CommodityOnline) http://www.commodityonline.com/news/Commodity-Trends-Plantation-crops-remain-bullish-24602-3-1.html

Rubber Prices May Climb to 30-Year High by March, Newedge Says

Rubber Prices May Climb to 30-Year High by March, Newedge Says
Jan. 7 (Bloomberg) -- Rubber may gain to the highest level in three decades by March as the economic recovery increases demand for the commodity used in tires and supply will decline, said a director at Newedge Group.
Futures on the Tokyo Commodity Exchange, the benchmark for rubber prices, may top the 2008 peak of 356.9 yen per kilogram ($3,868 a metric ton), the highest level since March 1980, said Makoto Sugitani, senior director at the commodity derivatives division of Newedge Japan Inc. The company is a member of the Tokyo bourse, taking orders from overseas funds.
Rubber futures more than doubled in 2009, reversing the previous year’s 56 percent loss. The Reuters/Jefferies CRB Index rose 23 percent last year, its best performance since 1979, as China led a recovery in demand for raw materials. Rising prices may benefit producers in Thailand, Indonesia and Malaysia and increase costs for tire makers such as Bridgestone Corp.
“Looking at the past trend, the market is set to extend a rally,” Sugitani said in an interview in Tokyo yesterday. “It is likely prices will return to the 2008 high.”
Rubber for June delivery, the most-active contract, gained 2.2 percent to 296.7 yen on the Tokyo Commodity Exchange at 10:29 a.m. local time. Prices earlier climbed to 297.2 yen, the highest level since September, 2008.
Foreign funds invest in Tokyo rubber contracts as the commodity is consumed and produced mostly in Asia, where the fastest regional economic growth in the world is fueling price gains, Sugitani said. Japan is Asia’s second-largest consumer, while Thailand, Indonesia and Malaysia are the world’s three biggest producers.
Declining Supplies
Supplies from producing countries will decline in coming months as the low-production season, or wintering, will start, Sugitani said. The seasonal factor may lead to a rally in prices this quarter, he added.
Rising car sales in China are also fueling a rally in rubber prices, he said. China’s passenger-car sales surged by 98 percent to 1.04 million in November, the largest increase in at least five years, the China Association of Automobile Manufacturers said last month. China’s full-year auto sales may be about 13 million, according to Booz & Co., which advises carmakers and investors in the country.
Rubber futures trading volume on the Tokyo Commodity Exchange, known as Tocom, fell 44 percent last year to 3.32 million lots, or 16.6 million tons, according to the bourse. Japanese individuals reduced participation under a law to curb aggressive soliciting of retail investors by brokers.
Overseas Investors
Still, overseas funds are unlikely to shift money away from Tokyo as the Shanghai Futures Exchange, the world’s largest market for rubber futures, is closed to foreign participation, Sugitani said. Liquidity on the Singapore Commodity Exchange, which trades U.S. dollar-based rubber contracts, is lower than Tokyo, he added.
“Fund managers interested in rubber trading will continue to put money into the Tokyo market,” Sugitani said. Overseas participants represented about 60 percent of rubber positions on Tocom at the end of November, according to exchange data, the highest rate among commodities listed on the bourse.
Tocom also trades gold, silver, platinum, palladium, aluminum, gasoline, kerosene and crude oil.
Newedge was formed as a 50-50 joint venture by French bank Societe Generale and Credit Agricole SA’s Calyon investment- banking unit, according to the company’s Web site.

Rubber Climbs to 15-Month High as Economic Outlook Improves
Jan. 7 (Bloomberg) -- Rubber rallied to a 15-month high on speculation an improved outlook for the global economy will boost demand for the commodity used in tires.
Futures in Tokyo advanced as much as 2.4 percent to the highest level since Sept. 22, 2008, gaining for a fifth day. A government report showed today Australian retail sales rose in November at more than four times the pace expected by economists, sending Asian stocks higher.
“Investor risk appetite increased on positive economic data,” Kazuhiko Saito, chief analyst at commodity broker Fujitomi Co. in Tokyo, said today by phone.
Rubber for June delivery gained as much as 6.9 yen to 297.2 yen a kilogram ($3,224 a metric ton) before trading at 292.6 yen on the Tokyo Commodity Exchange at 12:47 p.m. local time. Prices more than doubled last year, the best performance since at least 1976, according to Bloomberg data.
Futures trimmed gains after crude oil snapped 10 days of gains, weakening the appeal of natural rubber as an alternative to synthetic products made from petroleum.
Oil for February delivery declined as much as 0.6 percent to $82.65 a barrel in electronic trading on the New York Mercantile Exchange before trading at $82.85 at 12:54 p.m. Tokyo time. Prices declined after a government report showed yesterday an increase in stockpiles in the U.S.
Australian retail sales rose in November by the most in eight months. Sales climbed 1.4 percent from October, when they gained a revised 0.4 percent, the Bureau of Statistics said in Sydney today. The median forecast of 12 economists surveyed by Bloomberg News was for a 0.3 percent gain.
Rubber for May delivery on the Shanghai Futures Exchange gained 0.2 percent to 24,965 yuan ($3,656) a ton as of the 11:30 a.m. local time break. Earlier, the contract rose to 25,740 yuan, the highest level since July 2008.

Rubber Futures in Tokyo Rise to Highest Since September

Rubber Futures in Tokyo Rise to Highest Since September

Jan. 4 (Bloomberg) -- Rubber futures in Tokyo gained as much as 2.3 percent to the highest since September 2008 as crude oil advanced.

The June-delivery contract rose to 282.4 yen per kilogram before trading at 282 yen at 9:09 a.m. local time on the Tokyo Commodity Exchange.

Rubber Futures Double This Year as Global Economy Recovers Share Business ExchangeTwitterFacebook|

Rubber Futures Double This Year as Global Economy Recovers Share Business ExchangeTwitterFacebook|

Dec. 30 (Bloomberg) -- Rubber futures doubled this year, marking the largest annual gain in more than three decades, as the global economic recovery boosted demand for the material used in tires. Prices have risen nearly fourfold this decade.

Futures in Tokyo gained in 2009 as government stimulus measures in China, the largest consumer, led a demand revival. The contract, which reached a 15-month high of 278.9 yen per kilogram ($3,030 a metric ton) on Dec. 25, may rise to 300 yen to 320 yen in the January-to-March period, said Shuji Sugata, research manager at Mitsubishi Corp. Futures Ltd.

“The outlook for the rubber market in the first quarter is bullish,” Sugata said from Tokyo today. Increased vehicle demand in China and Japan and a strengthening global economy would fuel demand, he said.

Natural rubber for June delivery gained 0.5 percent to settle at 276 yen per kilogram on the Tokyo Commodity Exchange. The bourse will be closed tomorrow and Jan. 1 for the New Year holiday. The futures gained the most this year since 1976, according to Bloomberg data. The price has increased from 72 yen at the end of 1999.

Car sales in China rose 98 percent to 1.04 million units last month, the nation’s automobile manufacturers’ association said Dec. 10. Japan’s vehicle sales may gain 4.1 percent to 4.8 million vehicles next year as the government extends subsidies to boost car demand, an auto industry group said Dec. 24.

Tariff reduction in China will continue to stimulate demand next year, Navarat Kaewpratarn, senior marketing official at Future Agri Trade Co said by phone from Bangkok.

China Tariffs

The so-called temporary tariff rate for ribbed smoked sheet will be set at 20 percent of the import price, or 1,600 yuan ($234) a ton, whichever is lower, China’s Ministry of Finance said Dec. 16. The tariff for technically specified rubber is set at 20 percent of the imported price, or 2,000 yuan per ton, it said.

China’s natural rubber imports rose to 120,000 tons in November from 100,000 tons the previous month, according to government data.

Rubber has also rallied as crude oil futures advanced 77 percent this year in New York, poised for the biggest increase since 1999. Higher crude prices increase the cost of synthetic rubber products made from petroleum.

Crude oil for February delivery traded at $79.16 a barrel in electronic trading on the New York Mercantile Exchange at 2:49 p.m. in Singapore. The futures, which have tripled in the past decade, closed yesterday at the highest settlement since Nov. 18.

Rubber on the Shanghai Futures Exchange rose as much as 3.5 percent to 24,265 yuan ($3,554) a ton, the highest level for a most-active contract since August 2008, before settling at 23,890 yuan. The contract has also more than doubled this year.

Spot rubber rules firm

Spot rubber rules firm
Kottayam: The physical rubber prices continued to rule unchanged on Friday. According to observers, the market was totally in a holiday mood on the first trading day of the year. Sheet rubber closed unchanged at Rs 139 a kg amidst scattered transactions. The volumes were dull.
Futures improve
RSS 4 improved at its January futures to Rs 143.35 (142.50), February to Rs 145.51 (145.02), March to Rs 147.99 (147.08) and April to Rs 150.25 (149.41) a kg on National Multi Commodity Exchange (NMCE). The leading international markets remained closed on account of New Year.
Spot rates were (Rs/kg): RSS-4: 139 (139); RSS-5: 132.50 (132.50); ungraded: 128.50 (128.50); ISNR 20: 130 (130) and latex 60 per cent: 86 (86). (BL)

Rubber production seen falling in 2009

Rubber production seen falling in 2009
With a decline of 6.5 per cent in rubber production during the first eight months of the current fiscal, India could soon lose its pre-dominant position as the global leader in rubber productivity.



The Association of Natural Rubber Producing Countries has predicted that rubber productivity is poised to come down from 1,903 kg a hectare in 2008 to 1,774 kg in 2009.



Despite the predicted shortfall, India is still expected to dominate other major rubber producing countries in productivity. India's performance on the productivity front will depend on how well nearest rivals such as Thailand and Vietnam perform in the current and coming years. Vietnam, one of the nearest rivals with a productivity of 1,625 kg a hectare still remains a good 150 kg less than India. But India's position will depend more on how well Thailand's rubber plantations perform. While Thailand held the second position in 2008 with 1,698 kg, forecasts for the succeeding years are not available. (BL)

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Spot rubber stays steady
Kottayam: The physical rubber prices finished almost unchanged on Thursday. The only gainer of the day was latex 60 per cent which firmed up on better demand. Sheet rubber closed unchanged at Rs 139 from a kg amidst scattered transactions. The market appeared to be in a holiday mood on the last trading day of 2009 to celebrate the New Year.



The January futures for RSS 4 improved to Rs 142.50 (141.78), February to Rs 145.05 (143.94), March to Rs 147.24 (146.41) and April to Rs 149.50 (148.81) a kg on National Multi Commodity Exchange (NMCE). The Tokyo Commodity Exchange (TOCOM) remained closed owing to a designated holiday.



Spot rates were (Rs/kg): RSS-4: 139 (139); RSS-5: 132.50 (132.50); ungraded: 128.50 (128.50); ISNR 20: 130 (130) and latex 60 per cent: 86 (84.50). (BL)

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