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