Latex prices flare up on rain in Kerala

Latex prices flare up on rain in Kerala


Kottayam, June 14

Spot rubber prices were firm on Monday. According to sources, the trend was ridden by the moderate gains in domestic and international futures. Widespread rains in the plantation areas added further strength to the commodity as the change in weather is expected to hit the supplies badly in the days ahead. Sheet rubber increased to Rs 171 (170) a kg while latex 60 per cent flared up sharply by Rs 7 a kg on acute short supply.

Futures improve

The June series for RSS 4 improved to Rs 172.60 (171.27), July to Rs 168.40 (167.64) and August to Rs 163.40 (162.48) while the September series finished flat at Rs 158.50 (158.50) a kg on the National Multi Commodity Exchange. RSS 3 firmed up at its June futures to ¥355/Rs 179.69 (¥349.9), July to ¥338.3 (¥330.3), August to ¥319.2 (¥311.7), September to ¥297.6 (¥289.8), October to ¥279.8 (¥269.8) and November to ¥274.8 (¥264.8) a kg during the day session on the Tokyo Commodity Exchange. RSS 3 (spot) closed at Rs 165.32 (164.58) a kg at Bangkok.

Spot prices were (Rs/kg): RSS-4: 170.50 (170); RSS-5: 168.50 (167.50); ungraded: 168 (165); ISNR 20: 151.50 (151.50) and latex 60 per cent: 120 (113).



Rubber Advances for Third Day on Oil, Yen, Outlook for Demand
Posted: 13 Jun 2010 08:49 PM PDT
By Supunnabul Suwannakij

June 14 (Bloomberg) -- Rubber gained for a third day as costlier crude oil, a weaker yen and signs that the global economic recovery remains intact boosted optimism that demand for the commodity used in tires may grow.

Futures in Tokyo advanced as much as 2.8 percent, extending the 1.8 percent climb over in the previous two sessions, after Japan’s large manufacturers said business conditions improved from three months ago, according to government report today.

Crude oil advanced in New York on speculation that sustained growth in the U.S. economy will boost fuel demand. The Japanese currency fell for a third day against the euro on signs the global economic recovery is gaining momentum.

“Sentiment remains favorable as signs of global economic expansion spur speculation demand for tires will continue growing,” said Chaiwat Muenmee, an analyst at DS Futures Co. “Crude oil’s rally, trading above $74 a barrel, and the weakening of the Japanese yen supported the rubber market.”

Rubber for November rose as much as 7.4 yen to 272.2 yen a kilogram ($2,962 a metric ton) before trading at 271.5 yen on the Tokyo Commodity Exchange at 11:59 a.m. Tokyo time.

Japan’s large manufacturers’ sentiment was 10 points compared with 4.3 points last quarter, the government said in the report. The survey asks respondents whether conditions improved from the previous quarter, and a positive number means optimists outnumber pessimists.

Crude’s Gain

Crude for July delivery rose as much as 1.2 percent to $74.66 a barrel in electronic trading on the New York Mercantile Exchange, making synthetic rubber more expensive. The yen fell against all 16 of its major counterparts, making yen-based rubber contracts cheaper for holders of other currencies.

“Further gains in TOCOM prices may be limited as increasing supplies from Thailand are still pressuring the market,” Chaiwat said from Bangkok. Output of ribbed smoked sheet RSS-3 rubber has averaged 200 metric tons a day this month compared with slightly more than 100 tons a day in May, Chaiwat said.

The free-on-board price of RSS-3 grade for July delivery dropped 0.4 percent to 113.85 baht ($3.51) a kilogram on June 11, the Rubber Institute of Thailand said on its website. It reviews the price daily and issues new data in the afternoons.

Natural-rubber inventories monitored by the Shanghai exchange rose 31 tons to 17,881 tons, based on a survey of 10 warehouses in Shanghai, Shandong, Yunnan, Hainan and Tianjin, the bourse said on June 11.

The Shanghai Futures Exchange is closed today for a holiday, and will reopen on June 17. The September-delivery contract climbed 1.8 percent to settle at 21,825 yuan ($3,195) a ton on June 11.

(bloomberg.com)





Natural rubber prices stabilise
Posted: 13 Jun 2010 08:47 PM PDT
NEW DELHI: Natural rubber prices, which rose by about Rs 20 a kg during May, have remained stable since the beginning of this month on less offtake and global cues, a rubber association said on Sunday.

“Offtake has reduced as tyre companies are buying less nowadays and international prices have also come down recently,” Cochin Rubber Merchants Association President, Mr N Radhakrishnan said.

Meanwhile, the Rubber Dealers Association President, Mr George Valy thought availability of imported rubber in the market, along with lower global prices, had made rates for the commodity stable in domestic markets.

“There is a lot of imported rubber in the market. So we can’t say there is less availability. We are being guided by the global rates and they have come down, which will keep domestic prices low,” he said.

Prices of domestic natural rubber (RS-4 variety) stood at Rs 169.50 a kg in the Cochin and Kottayam markets on June 12 and have remained in the range of Rs 166.50-Rs 169.50 a kg since June 1.

When asked about the direction of natural rubber prices in the next couple of weeks, the experts gave divergent views.

“Though we move in tandem with global prices, I think prices could flare up in the next two weeks on low tapping,” Mr Radhakrishnan said. He attributed the lower production to the arrival of the monsoons in Kerala, the largest rubber producing state in I ndia.

However, Mr Valy believed that prices could fall in the next two weeks as adequate material was available in the market and tyre companies lowered their production during the monsoon season.

(thehindubusinessline.com)





Philippine to Establish Rubber Research Institute
Posted: 13 Jun 2010 08:45 PM PDT
The Philippine will establish a research facility for the development of the local rubber industry.

The President of the Philippine, Mrs. Gloria Macapagal Arroyo, on 13 May signed the Philippine Rubber Research Institue Act which will pave the way for the establishment of the Philippine Rubber Reasearh Institue (PRRI) which will be based at the Mindanao State University in Naga, Zamboanga de Sibugauy.

The PRRI will be under the supervision of the Department of Agriculture and is mandated to promote planting and propagation of rubber trees as source of latex or the raw material used in making rubber for industrial, automotive and other purposes.

It will also be tasked to ensure that both rubber producers and processors will have access to high-quality rubber tree seedlings, modern production techniques, and support services for production and marketing of rubber products, in addition to providing training, capacity-building programs, and initiating development projects to address technology and policy gap

Even though the Philippine rubber industry started at about the same time as that of its neighbours, Indonesia and Malaysia, some time in 1905, it has been lagging very far behind, contributing about 1% of the world consumption of rubber.

(Irco.biz)





China's NR Imports in May Declined 36%
Posted: 13 Jun 2010 08:44 PM PDT
China’s imports of natural rubber in May was down by 36% to 90,000 metric tonnes from the same month in the previous year, according to the General Administration of Customs.

The data released also showed May’s imports of natural rubber declined by the same rate from April, when 140,000 metric tonnes were imported.

Whilst no reason was given, trade sources attributed the decline to the release of 60,000 metric tones of government stockpile and the drawdown on stocks estimated at 120,000 metric tonnes from warehouses in Qingdao over the period to tide the pressure from high prices and shortage from domestic supply due to the drought in the south west.

Nevertheless, the total import of natural rubber from January to May, totaling 720,000 tons, showed a rise of 3.5% from the same period the previous year.

(Irco.biz)





Thailand: 3rd Phase NR Planting Expansion Approved
Posted: 13 Jun 2010 08:43 PM PDT
The third phase of the natural rubber planting project for 2010 - 2012 involving 800,000 rai or 128,000 hectares of land in five regions of the country was approved at a recent meeting of the Natural Rubber Policy Committee chaired by the Deputy Prime Minister, Mr. Suthep Thungsuban.

Once endorsed by the Cabinet, this phase will be implemented on new lands divided into 150,000 rai or 24,000 hectares in the North; 500,000 rai or 80,000 hectares in the Northeast; 150,000 rai or 24,000 hectares each in the Eastern, Central and Southern parts of Thailand.

The first and second phase of the project have been implemented since 1989 focusing on planting rubber in the Northeastern region targeted at 408,120 rai or 65,300 hectares and 200,000 rai or 32,000 hectares of land, respectively for each phase.

(Irco.biz)