Mixed trend in rubber futures

Mixed trend in rubber futures

Kottayam, Aug 23

Rubber futures witnessed a mixed trend on Monday.

The September series improved to Rs 170.30 (168.20), October to Rs 165.30 (164.14) and November to Rs 164.75 (164.17) while the December series slipped to Rs 165 (165.36) a kg for RSS 4 on the National Multi Commodity Exchange.

The volumes totalled 1,732 lots and turnover Rs 29.25 crore.

The open interest in all series was 4,060 lots.

August futures for RSS 3 weakened to ¥328.5/Rs 179.95 (¥ 332) a kg during the day session and closed unchanged during the night session on the Tokyo Commodity Exchange (TOCOM).

The spot rubber market remained closed owing to Onam.



India's NR import Above 110,000 tonnes
Posted: 22 Aug 2010 10:55 PM PDT
India may possibly import 110,000 tonnes of natural rubber in the financial year 2010/11 because record-high local prices are forcing tyre makers to buy more natural rubber from abroad.

This is higher than the Indian Rubber Board’s estimate in April of 70,000 tonnes of import for the year, when spot rubber price was at US $ 3.45 per kilogram.

Industry officials, however, said the imports in the financial year 2010/11 would be higher than 110,000 tonnes as rubber is much cheaper in the international market and domestic demand is very strong. Spot prices in early August hit a record high of US $ 4.00 per kilogram, widening the difference between global and domestic prices.

(irco.biz)





Kerala raises concern over move to slash rubber import duty
Posted: 22 Aug 2010 10:54 PM PDT
THIRUVANANTHAPURAM: Both ruling LDF and opposition UDF in Kerala expressed concern over Centre's reported move to slash import duty on natural rubber, holding it would deal a blow to the state, which accounts for 90% of the production in the country.

Talking to reporters here, state finance minister T M Thomas Isaac alleged the duty was being reduced from 20 per cent to 7.5% under pressure from powerful lobby of rubber industries, including Association of Tyre Manufacturers (ATMA), without bothering about "adverse consequences" it would have on the farmers in Kerala.

A delegation of Congress-led UDF MPs met Union Commerce Minister Anand Sharma in New Delhi today seeking reversal of the decision of the Finance Ministry which was expected to be approved by the Union cabinet shortly.

Idukki MP P T Thomas said, Sharma assured the delegation that price situation would be reviewed every fortnight and remedial measures would be taken if there was any drastic fall in domestic price.

However, LDF Government was not willing to take such an assurance seriously arguing that past experience in matters like this did not give much hope.

Isaac said the decision would lead to sharp crash in the price of the domestic output at a time when it was fetching around Rs 185 a kg in the Indian market.

Though international price was less by just Rs 10 to Rs 15, reduction in import duty would still lead to largescale dumping of natural rubber into the country to the peril of the domestic growers, Isaac said.

CPI-M state Secretary Pinarayi Vijayan said slashing of import duty when huge quantities of rubber was piling up in Kerala would lead to largescale import from countries like Thailand, Indonesia and Malaysia.

This would be a great disservice to the domestic producers, he said in a statement.

According to official figures, India produced about 7-8 lakh tonnes of rubber a year, of which Kerala accounted for over 90 per cent.

Read more: Kerala raises concern over move to slash rubber import duty - Thiruvananthapuram - City - The Times of India http://timesofindia.indiatimes.com/city/thiruvananthapuram/Kerala-raises-concern-over-move-to-slash-rubber-import-duty-/articleshow/6383216.cms#ixzz0xPDKndhW

(timesofindia.indiatimes.com)





Centre betrayed the rubber farmers: BJP
Posted: 22 Aug 2010 10:52 PM PDT
Bharatiya Janata Party (BJP) Kerala unit, today alleged that the Union government had betrayed the over 11 lakh rubber farmers in the state by their decision to reduce rubber import duty to 7.5%.

Speaking to mediapersons here, AN Radhakrishnan, general
secretary, BJP state unit, said alleged that the agriculture sector has been totally destroyed as a result of the anti-people policies pursued by both the ruling LDF as well as the congress-led UDF.

The state government was getting Rs 400 crore as tax from the rubber sector in Kerala, he said.

The Centre's decision would adversely affect the farmers in Kerala, he said, adding the state government should raise strong protest against the reduction of import duty.

Since over 92% of the national production of rubber was produced from Kerala, the state government and Rubber Board has moral responsibility to safeguard the interests of the rubber farmers in the state, he said.

BJP demands the Centre to reconsider their decision to reduce the import duty, he said.

(dnaindia.com)





Spot rubber ends weak
Posted: 22 Aug 2010 10:51 PM PDT
On Saturday (21 August 2010), the spot rubber prices ended weak as the market appeared to be in a holiday mood prior to Onam. Sheet rubber declined further to Rs 170 from Rs 171 per kg on buyer resistance.

The September futures for RSS 4 rose to Rs 168.20 (167.24), October to Rs 164.14 (163.19), November to Rs 164.17 (163.81) and December to Rs 165.36 (163.81) per kg on the National Multi Commodity Exchange.

Spot rates were (Rs/kg): RSS-4: 170 (171); RSS-5: 161 (162); ungraded: 156 (156); ISNR 20: 150 (150) and latex 60 per cent: 111 (111).

(indiainfoline.com)


Rubber Declines for Second Day on Concern Slower Economy to Curtail Demand
Posted: 22 Aug 2010 10:58 PM PDT
Rubber declined for a second day, extending a retreat from a three-month high, on concern that the economic recovery is faltering, capping demand for the commodity used to make tires.

Futures in Tokyo declined as much as 1.2 percent after climbing 3.7 percent last week. The price reached 295.2 yen per kilogram ($3,459 per metric ton) on Aug. 20, the highest level since May 6.

Most Asian stocks fell amid mounting concern that the global economy may be faltering after calls by a European Central Bank official to maintain stimulus measures. Purchases of U.S. new and existing houses dropped 12 percent to a 5.01 million annual pace, the lowest since March 2009, according to the median forecast of 54 economists surveyed by Bloomberg News.

“Worries about economies sapped investor appetite for riskier assets,” leading to sales of industrial commodities including rubber, Kazuhiko Saito, an analyst at Tokyo-based broker Fujitomi Co., said today by phone.

January-delivery rubber dropped as much as 3.5 yen to 287.6 yen per kilogram on the Tokyo Commodity Exchange before trading at 287.8 yen at 11:27 a.m.

Japan’s Nikkei 225 Stock Average slumped to a nine-month low after European Central Bank council member Axel Weber said emergency lending should be extended, indicating that the region’s debt crisis may take longer to solve.

Weber said on Aug. 20 that the ECB should help banks through end-of-year liquidity tensions before determining in the first quarter when to withdraw emergency-lending measures. The comments on the need to keep open the flow of emergency funds go beyond what ECB President Jean-Claude Trichet has announced.

Cash-rubber prices in Thailand, the world’s largest exporter, stayed unchanged at 105.5 baht ($3.35) per kilogram, as supply remained limited because of rainfalls in many estate areas, the Rubber Research Institute of Thailand said Aug. 20.

January-delivery rubber on the Shanghai Futures Exchange lost 1.2 percent to 25,130 yuan ($3,697) a ton at 10:15 a.m. local time.

(bloomberg.com)