Mixed trend in rubber

Mixed trend in rubber


Kottayam, Jan. 13

Spot rubber saw mixed trend on Thursday. The market took a halt possibly as the January futures on the National Multi Commodity Exchange (NMCE) finished slightly weak consecutively for the second day though the global indices were bullish. Meanwhile, ungraded rubber slipped on buyer resistance while ISNR 20 improved amidst better volumes.

Among other reports from the global scene, the key Tokyo rubber futures opened firm hitting another record high on early trades as a continuation of the rise in other commodities and expectations on strong demand as well as supply concerns.

According to traders, sheet rubber finished firm at Rs 220 a kg. The grade closed steady at Rs 219 a kg both at Kottayam and Kochi, as quoted by the Rubber Board.

The January series closed at Rs 218 (218.11), February at Rs 225.90 (225.92), March at Rs 231.49 (231.49) and April at Rs 239.70 (238.74) a kg for RSS 4 on the NMCE.

RSS 3 (spot) bounced back to Rs 245.10 (241.22) a kg at Bangkok. The January futures for the grade improved to ¥444.5 (Rs 242.27) from ¥441.5 a kg during the day session and then to ¥444.6 (Rs 242.33) in the night session on the Tokyo Commodity Exchange.

Spot rates were (Rs/kg): RSS-4: 220 (220); RSS-5: 208 (208); ungraded: 204 (205); ISNR 20: 216 (215) and latex 60 per cent: 150 (150).



Spot rubber prices top Rs 220/kg

Kottayam, Jan. 12
Spot rubber prices scaled unprecedented heights on Wednesday. In spot, RSS 4 moved above its January futures on the National Multi Commodity Exchange (NMCE), creating another record high on fresh buying and short covering. It was hard to find any bearish factors in the market that could dampen the sentiments in short term.
The market moves in tune with the global rates. There is 20-22 per cent increase in overall production, while tyre companies procure rubber not only for immediate requirement but to reserve a comfortable stock in view of the record price rise every day, said Mr Ibrahim Jalal, Treasurer, Indian Rubber Dealers Federation. Large growers also hold the produce for better catches in the days ahead, he said.
Sheet rubber firmed up to Rs 220 (217) a kg, according to dealers. The grade increased to Rs 219.50 (216.50) a kg both at Kottayam and Kochi according to reports from the Rubber Board.
The January series for RSS 4 closed at Rs 218 (218.02), February at Rs 225.90 (226.33), March at Rs 231.60 (231.80) and April at Rs 239 (237.80) a kg on the NMCE.
RSS 3 (spot) slipped to Rs 241.22 (242.87) a kg at Bangkok. The January futures for the grade flared up to ¥441.5 (Rs 239.53) from ¥432 a kg during the day session and then to ¥442 (Rs 239.80) in the night session on the Tokyo Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 220 (217); RSS-5: 208 (206.50); ungraded: 205 (202); ISNR 20: 215 (213) and latex 60 per cent 150 (149).



Natural Rubber Stocks Fall To 131,381 Tonnes At End November 2010

KUALA LUMPUR, Jan 12 (Bernama) -- The level of stocks of natural rubber(NR) at the end of November 2010 was at 131,381 tonnes, a decrease of 6,614 tonnes or 4.8 per cent from that held in the previous month.
The stocks also decreased by 1.8 per cent when compared with that held in the same month of the previous year, the Department of Statistics said in a statement here Wednesday.
A total of 83,185 tonnes of NR was exported in November, an increase of 5,262 tonnes or 6.8 per cent over the previous month.
Meanwhile, year-on-year exports rose by 18,216 tonnes or 28 per cent.
The biggest share of NR exports was taken by the Standard Malaysian Rubber (SMR) at 95.4 per cent of which 54.6 per cent was the SMR 20.
The main destinations for exports was China, accounting for 53.2 per cent and Germany at 9.1 per cent.
Other important destinations included Iran (4.5 per cent), Korea (4.3 per cent), United States (3.9 per cent) and Netherlands (3.0 per cent).
Imports in November meanwhile, totalled 61,463 tonnes and this was 0.6 per cent higher than that for the previous month.
However, for year-on year, imports dropped 3.8 per cent.
Latex concentrate was the main type of rubber imported and accounted for 43.1 per cent of the total.
NR was mainly imported from Thailand (50.2 per cent) followed by Indonesia (13.5 per cent), Vietnam (12.2 per cent) and the Philippines (8.1 per cent).
Production of NR in November amounted to 73,100 tonnes, a decrease of 20,944 tonnes or by 22.3 per cent from October.
Year-on-year, production recorded an increase of 9,916 tonnes or up by 15.7 per cent.
The major contributor of Malaysia's NR was the smallholding sector with 94.3 per cent while the estate sector's contribution was only 5.7 per cent.
As for prices, the average monthly price of NR continued to increase.
The average price of latex concentrate rose by 10.6 per cent to 844.43 sen, while the average price of SMR 20 went up by 11.1 per cent to 1,283.55 sen month-on-month.
Prices were also much higher when compared with 2009, with the average price of latex concentrate and SMR 20, increasing by 63.6 per cent and 57.2 per cent respectively.