Rubber Gains to 4-Week High as Yen Drops, Thai Prices Increase Share Business

Surge in NMCE's physical delivery of rubber
AHMEDABAD: National Multi Commodity Exchange of India witnessed 263% increase in delivery in natural rubber from 430 metric tons in January 2010 to 1559 metric tons in February 2010. The Rubber Futures contract expires on the 15th of every month. The delivery happened at NMCE registered warehouse of CWC. An increase in demand from the rubber consuming industry for quality rubber and multi delivery centers of exchange certified warehouse of CWC were the key reasons for the increase in delivery, NMCE said in a press release.

“This is very healthy trend because on one hand producers are able to harness good price and deliver their Rubber in the exchange warehouse and on the other hand user industry is able to hold the position by just paying margin money and take delivery by paying full only on the date of delivery. Quality of Rubber is also being maintained by scientific storage in quality godowns of CWC, “said Mr. Anil Mishra- CEO, NMCE

Mr. B.B. Pattanaik (Chairman, NMCE & MD, CWC) said, “I express my satisfaction over large number of deliveries taken by the consumers. Rubber has been a jewel in the crown of NMCE where a large number of growers participate in Futures and also take advantage of this alternative platform where they can sell their produce at appropriate price through depositing the produce with CWC for scientific storage and for taking loan against the CWC Warehouse Receipts from the banks.”


Mr. C.P.Krishnan- Director, Geojit Comtrade commented, “Many consuming industries have taken delivery from NMCE certified warehouses of CWC. The key reason for taking delivery from exchange certified warehouse is that quality rubber in large quantity can be taken delivery at designated locations.”


The inventory at exchange certified warehouses has also been increasing and more than 7230 metric tonnes is lying deposited in the exchange warehouses and more and more deliveries are taking place. Rubber deposits are lying at CWC warehouses at Aluva, Ernakulum, Kakkanad, Palakkad, Kozhikode, Kottayam and Trichur.


NMCE, which is the only national exchange in the country to trade Rubber futures also, has the distinction of being the third largest Rubber Futures trading exchange in the world after Shanghai Futures Exchange (SHFE) and Tokyo commodity Exchange (TOCOM). (Commodity Online)

http://www.commodityonline.com/news/Surge-in-NMCEs-physical-delivery-of-rubber-25751-3-1.html

Tyre prices may increase after Budget
Kochi: The tyre industry expects prices to increase further after the Budget as the prices of the raw material are on an upsurge.



Natural rubber (NR) prices have been appreciating since the last few months. The price of benchmark grade RSS-4 increased to Rs 140 a kg today from Rs 134 a kg last week. The possibility of a second round of price rise this year will be viewed only after the Budget, said a top official of Automotive Tyre Manufacturers Association (Atma). “We have submitted some proposals to the Minister for Finance in the pre-Budget discussion and hope for the best. The bull phase in the NR market is likely to continue for the next few months as this is an off season. So tyre companies can not go for long with the existing price pattern,” he said.


It is too early to comment on a second round of price increase, said AS Mehta, director (marketing), JK Tyres. “The import duty structure on NR and tyres is highly negative to the industry and the duty on NR should be reduced. at present, the duty on tyre is 10 per cent while NR has got an import duty of 20 per cent. How can we justify just half the duty of raw material for the finished product,” he added. (BS)

http://www.business-standard.com/india/news/tyre-prices-may-increase-after-budget/386014/


Rubber Gains to 4-Week High as Yen Drops, Thai Prices Increase Share Business

Feb. 19 (Bloomberg) -- Rubber advanced to a four-week high as the yen dropped against the dollar after the Federal Reserve Board raised the discount rate and Thai exporters boosted prices on improving demand from buyers in Asia.

Futures in Tokyo gained as much as 1.5 percent to the highest level since Jan. 22. The price is headed for a second weekly gain.

The Fed raised the discount rate charged to banks for direct loans by a quarter point to 0.75 percent, the first increase in more than three years. Japan’s currency reached a one-month low against the dollar, boosting the appeal of yen- based contracts. Rubber also gained as shippers in Thailand, the world’s largest producer, raised export prices after purchases by an Asian company, said Kazuhiko Saito, chief analyst at Tokyo-based broker Fujitomi Co.

“Physical rubber prices gained on good demand and as supply is set to decrease seasonally,” Saito said by phone today. “Prices may increase further as Chinese buyers will return to the market next week after holidays.”

Rubber for July delivery, the most-active contract, gained as much as 4.4 yen to 300.2 yen per kilogram ($3,239 a metric ton) before trading at 297.5 yen on the Tokyo Commodity Exchange at 11:56 a.m. local time.

In the cash market, Thai shippers offered so-called RSS-3 grade rubber for April shipment at about $3.30 a kilogram today from $3.18 yesterday, Saito said. Rubber trees shed leaves and latex output slows during wintering, the low-production season that normally begins in Thailand’s main growing areas in February.

The rubber market in Shanghai is closed this week for the Lunar New Year holidays.

Gains in futures were limited as crude oil declined, reducing the cost of making rival synthetic rubber, Saito said. Oil dropped for the first time in four days as the dollar’s rally weakened the appeal of the commodity as an alternative investment.

Crude oil for March delivery dropped as much as 1.4 percent to $77.95 a barrel in electronic trading on the New York Mercantile Exchange before trading at $78.07.


Spot rubber declines with futures

Kottayam, Feb. 18

Spot rubber turned weak on Thursday. Declines in trendsetting TOCOM futures and signs of weakness in domestic futures kept the market under pressure. Sheet rubber moved down to Rs 139.50 (140.00) a kg on buyer resistance. There was no visible selling pressure on any grade in the main marketing centres while the trend was mixed as ISNR 20 and latex finished flat amidst comparatively dull volumes.

Futures weak

RSS 4 recovered partially at its March futures to Rs 141.00 (140.25), April to Rs 145.50 (144.76), May to Rs 148.70 (148.27) and June to Rs 150.50 (150.25) a kg on National Multi Commodity Exchange (NMCE). The February futures for RSS 3 weakened to 286.0 (286.8) ¥ (145.54), March to ¥ 285.4 (288.9), April to ¥ 288.8 (291.7), May to ¥ 291.7 (293.9), June to ¥ 293.7 (296.1) and July to ¥ 295.8 (298.1) for a kg during the day session on Tokyo Commodity Exchange.

RSS 3 improved to Rs 147.71 (147.19) a kg on Singapore Commodity Exchange (SICOM). Its spot closed marginally higher at Rs 146.30 (146.26) a kg at Bangkok.

Spot prices (Rs a kg) were: RSS-4 : 139.50 (140); RSS-5 : 136 (137.00); ungraded : 134.50 (135); ISNR 20 : 135 (135); and latex 60 per cent: 90 (90).