Mixed trend in rubber

Mixed trend in rubber

Kottayam, May 19

Physical rubber prices witnessed a mixed mood on Wednesday. Sheet rubber closed unchanged at Rs 160 a kg on buyer resistance possibly since the domestic futures were in a corrective phase during the session. According to observers, the market seemed to be struggling to hold on the gains lacking strong consumer support above Rs 150 a kg for sheet rubber. The transactions were in a low key.

Futures decline

The June futures declined to Rs 161.20 (163.42), July to Rs 160.90 (163.37), August to Rs 154.70 (158.14) and September to Rs 151.24 (153.76) a kg for RSS 4 on the National Multi Commodity Exchange. RSS 3 improved further at the May futures to ¥372(Rs 188.70) (¥370), June to ¥345.2 (¥338.8), July to ¥305 (¥295), August to ¥380.7 (¥273.4), September to ¥270.8 (¥264.1) and October to ¥267.7 (¥262) a kg during the day session on the Tokyo Commodity Exchange. The May futures closed at ¥375 (Rs 190.05), June at ¥342.1, July at ¥305.4, August at ¥275.7, September at ¥265.6 and October at ¥262.8 a kg during the night session. RSS 3 improved further to Rs 163.58 (160.42) a kg at Bangkok.

Spot rates were (Rs/kg): RSS-4: 160 (160); RSS-5: 156 (155); ungraded: 154 (152); ISNR 20: 139 (138) and latex 60 per cent: 98.50 (97).


Oil, Copper, Zinc Tumble as Commodities Slide on Euro Concern
Posted: 18 May 2010 11:24 PM PDT

By James Poole
May 19 (Bloomberg) -- Crude oil, copper, zinc and rubber dropped on concern Europe’s debt crisis will worsen, derailing economic growth and hurting demand for commodities.

Oil for June delivery slumped as much as 2 percent to $68.05 a barrel before trading at $68.14 at 8:46 a.m. Singapore time. Copper for three-month delivery declined 2.8 percent to $6,505 per ton, zinc slid 3.5 percent to $1,871 per ton and rubber fell 1.6 percent to 257.80 yen per kilogram.

(bloomberg.com)



Rise in spot rubber prices
Posted: 18 May 2010 11:23 PM PDT

On Tuesday (18 May 2010), the spot rubber prices rose due to speculative interests. Another bull run in the domestic and international markets mainly TOCOM catalysed the day's mood. Sheet rubber increased sharply to Rs 160 (Rs 155) per kg amidst scattered transactions.

The June futures for RSS 4 rose to Rs 163.30 (157.90), July to Rs 163.11 (157.72) and August to Rs 158 (154.34) a kg on National Multi Commodity Exchange.

Spot rates were (Rs/kg): RSS-4: 155 (154); RSS-5: 151 (150); ungraded: 148 (147.50); ISNR 20: 136 (137) and latex 60 per cent: 96 (97).
(indiainfoline.com)




Synthetic rubber output up 27% in Feb
Posted: 18 May 2010 11:22 PM PDT

The production of synthetic rubber went up by 24.2% to 8,768 tonne in February against 7,055 tonne in the year-ago period, according to the latest Rubber Board data. Consumption grew by about 30% to 31,440 tonne in February 2010 over 24,210 tonne in the same month last year, on the back of high demand from auto tyre manufacturers.


Rubber Gains to One-Week High as Thai Riots May Disrupt Supply

May 20 (Bloomberg) -- Rubber advanced to the highest level in more than a week as clashes between security forces and protesters in Thailand raised concern that supply from the world’s largest exporter may be disrupted.

Futures in Tokyo gained for a third day, advancing as much as 2.3 percent to the highest level since May 11, as fighting continued in Bangkok a day after the forced surrender of anti- government protesters left 16 people dead.

Rioters set fire to 31 buildings including several banks in Bangkok, Thanom Onketpol, an adviser to the city’s governor, said on the PBS television network. Protesters also torched a city hall in Udon Thani province and seized a government building in Khon Kaen, both in the northeast of the country. Thailand is the world’s largest producer and shipper of rubber.

“Riots in Thailand were spreading from Bangkok to other areas, raising concern that violence may escalate further and disrupt transportation of the raw material,” Takaki Shigemoto, an analyst at research and investment company JSC Corp. in Tokyo, said today by phone.

Rubber for October delivery, the most-active contract, gained as much as 6.1 yen to 273.8 yen per kilogram ($2,984 a metric ton) before trading at 269.3 yen on the Tokyo Commodity Exchange at 11:52 a.m. local time.

The price earlier declined to as low as 262.6 yen as a drop in equities markets raised speculation that economic growth may stall. Asian stocks fell for the fifth straight day amid concern that Europe’s debt crisis may derail a recovery as governments take austerity measures to reduce deficits.

Risk Appetite

The risk appetite of investors also dropped as Germany this week introduced a temporary ban on naked short selling to calm the region’s financial markets.

“Germany’s short-sale restriction is prompting suspicion that the situation is actually worse than investors think,” said Mitsushige Akino, who oversees the equivalent of $450 million at Ichiyoshi Investment Management Co.

Rubber futures have retreated 20 percent after climbing to a 21-month high of 338.5 yen on April 16 on a seasonal drop in supply from Thailand.

Producers in Thailand’s south, the major growing area, have resumed tapping rubber trees as the low-production period known as wintering ends, Shigemoto said.

Thai shippers offered so-called RSS-3 grade rubber for July shipment at $3.50 a kilogram yesterday, up from $3.15 on May 14, he said.

September-delivery rubber on the Shanghai Futures Exchange added 0.5 percent to 21,955 yuan ($3,216) a ton at 10:58 a.m. local time.