Buyer resistance pulls down spot rubber

Buyer resistance pulls down spot rubber
Aravindan

Kottayam, July 16

Rubber prices declined sharply on Friday. In the spot, the prices dropped following fall in domestic rubber futures. Sheet rubber weakened to Rs 180 from Rs 184.25 a kg on buyer resistance. According to reports, the record-high rubber prices are set to soften in the next two months on improved supplies following imports and a rise in domestic arrivals. However, the prices are unlikely to go back to the mid-2009 levels as demand continues to outstrip supply.

Futures weak

Rubber futures hit the lower circuit on Firday losing Rs 350-508 in various series traded on the NMCE. The August series dived to Rs 173.80 (179.81), September to Rs 164.20 (170.73) and October to Rs 160.50 (165.40) while the November futures finished the debut trading at Rs 161 a kg for RSS 4. RSS 3 improved with the July futures rising to ¥355\Rs 191.45 (¥347.8), August to ¥296.9 (¥293.9), September to ¥285.4 (¥282.8), October to ¥270.5 (¥268.8), November to ¥265.3 (¥264.1), and December to ¥263.9 (¥262.4) a kg during the day session on the Tokyo Commodity Exchange. RSS 3 (spot) closed at Rs 153.02 (153.05) a kg at Bangkok.

Spot rates were (Rs/kg): RSS-4: 180 (184.25); RSS-5: 175 (179); ungraded: 171 (173.50); ISNR 20: 159 (161.50) and latex 60 per cent: 126 (128).



Rubber Advances as Nearby Contract Surges on Low Stockpiles Due to Weather
Posted: 16 Jul 2010 05:58 AM PDT
Rubber futures climbed, led by a rally in the nearby contract amid speculation that low stockpiles in Japan may make physical delivery difficult at its expiry this month.

Futures in Tokyo gained for the second time this week. The nearby contract, which will expire on July 26, jumped as much as 2.8 percent, widening the price differential with the December- delivery futures, the most-active contract.

Natural rubber stockpiles monitored by the Tokyo Commodity Exchange dropped by 6.2 percent to 1,880 metric tons on June 30, nearing a record low of 1,408 tons reached in October 2008, according to exchange spokesman Seiki Ichimura. Supply decreased after rain disrupted tapping in Thailand, the world’s largest producer and exporter, said Kazuhiko Saito, an analyst at Tokyo- based broker Fujitomi Co.

“Tight supply is spurring a short-covering rally,” Saito said by phone today. Speculators with short, or sell, positions in the July contract must buy them back by July 26, the expiry date, unless they can deliver the raw material.

December-delivery rubber gained as much as 1.6 percent to 266.5 yen per kilogram ($3,056 a ton) before settling at 263.9 yen on the Tokyo Commodity Exchange. The price lost 3.3 percent this week, the second drop in three weeks.

July-delivery rubber gained as much as 2.8 percent to 357.5 yen before settling at 355 yen. Last month, the June-delivery contract expired at 372 yen.

Gains in futures were limited amid concern that a slowdown in economic growth in China, the largest consumer, may curb demand for the commodity used in tires, Saito at Fujitomi said.

Economic growth in China slowed to 10.3 percent in the second quarter from 11.9 percent in January-March, data showed yesterday. China’s expansion eased after the government tempered credit expansion, investment spending and property speculation.

November-delivery rubber on the Shanghai Futures Exchange gained 0.8 percent to 21,525 yuan ($3,177) a ton at 2:53 p.m. local time.

(bloomberg.com)





NMCE Rubber Quotes Lower In Afternoon Trades
Posted: 16 Jul 2010 05:57 AM PDT
Rubber futures in the domestic futures market traded with high volatility in today's trading sessions. The benchmark August contract on NMCE fell to the session low of Rs 17920 after hitting the high of Rs 18140 per 100 kg during the early trading session. The counter is now trading lower at Rs 18021, down Rs 57 from the last close.

TOCOM Commodity Exchange Rubber ended the morning session lower with benchmark December futures ending the session lower by 1.80 Yen at 262.40 Yen a kg. Futures rebounded from the losses in the later trading sessions on some buying interest. December futures contract is currently quoting in the TOCOM commodity exchange higher by 1.60 yen at 264 yen a kg.

The ANRPC lowered its forecast of growth for global supply of natural rubber for 2010 to 5.2% from the 6.1% rate anticipated in May, according to its June monthly bulletin released recently. The ANRPC had earlier in March anticipated a 6.3% rate of growth and had even then cautioned it to be an optimistic rate and pointed out a host of constraints in its achievement.

According to government and industry sources, India's imports of natural rubber will likely rise in the current fiscal year as local production is growing at a much slower pace than demand, mainly from tire makers.

Auto sales in both the U.S. and China continued to rise in June but at a slower pace than the previous month. China's auto sales surged 30.45% year on year to 7.18 million units in the first half of the year, keeping China's position as the world's largest auto market intact. U.S. auto sales also grew in June from thedepressed level of year earlier. Light vehicle sales rose 14% to 983,738 units in June compared to the last year.

(indiainfoline.com)





Decline in spot rubber prices
Posted: 16 Jul 2010 05:56 AM PDT
On Thursday (15 July 2010), the spot rubber prices declined as the trend setting domestic and international markers were bearish. Sheet rubber declined to Rs 184.25 from Rs 185 per kg, while the remaining grades except latex 60% also declined in with the day's sentiments.

The July futures for RSS 4 expired at Rs 187 (192.31), while the August series declined to Rs 179.95 (180.78), September to Rs 170.75 (171.86) and October to Rs 165.40 (166.51) a kg on the National Multi Commodity Exchange.

Spot rates were (Rs/kg): RSS-4: 184.25 (185); RSS-5: 179 (179.50); ungraded: 173.50 (174.50); ISNR 20: 161.50 (162) and latex 60 per cent: 128 (128).

(indiainfoline.com)