Rubber stretches gains on global cues

Rubber stretches gains on global cues


Kottayam Jan. 6

Physical rubber prices reached another all-time high on Thursday. Sustained uptrend in the international markets and supply concerns lifted the market to unseen levels but it lacked quantity sellers even at record prices. According to reports, Indian tyre makers bought natural rubber at Rs 212 a kg on Wednesday after a surge in international markets. They are expected to remain active even at current levels.

“The prices will scale further highs mainly due to enhanced consumption in China and India,” said Prof. K.K. Abraham, President, Pala Marketing Society. “Even in Thailand one of the major rubber producing countries, there is 30 per cent fall in production. Similarly in India, production fall is said to be quite inevitable. Weather changes also affect the production considerably,” he said.

According to traders, sheet rubber improved to Rs 214 (212) a kg in the main marketing centres. The grade gained further to Rs 213 (210.50) a kg both at Kottayam and Kochi, as reported by the Rubber Board.

Futures weak

The January series for RSS 4 weakened to Rs 213.70 (214.42), February to Rs 220.66 (221.67) and March to Rs 225.76 (226.61) a kg while the April series finished marginally higher at Rs 233.50 (233.01) a kg on the National Multi Commodity Exchange. RSS 3 (spot) increased sharply to Rs 237.53 (230.94) a kg at Bangkok. The grade flared up further at its January futures to ¥432.5 (Rs 235.60) from ¥419 a kg during the day session but then slipped to ¥429.9 (Rs 234.15) in the night session on the Tokyo Commodity Exchange.

Spot rates were (Rs/kg): RSS-4: 214 (212); RSS-5: 203 (202); ungraded: 200 (198); ISNR 20: 210 (208) and latex 60 per cent: 144 (143).



Domestic natural rubber prices hit all-time high

New Delhi Natural rubber prices are for the third consecutive day to a peak of 214 rupees per kilo in the market today by a decline in arrivals and strong global signals, which could have an impact on the Tire profit margins of producers are met.
Natural rubber prices closed at 210.5 rupees per kg at Kottayam and Kochi market yesterday, compared with 209.5/kg R at the previous meeting.
Today, the prices of natural rubber more than establish a record of all time has increased from Rs 214 per kg in the main shopping centers of the goods.
According to industry experts, an increase in demand in the U.S. on the back was better than expected growth in the automotive industry to world market prices for raw materials and the impact in the domestic markets felt pushed.
International rubber prices are in touch new highs and domestic prices have only said after the India Rubber Motor Federation President George Vally.
He said the prices are expected to rise because there is still a big difference between domestic and international prices.
Natural rubber prices have risen in recent months due to production interruptions in Kerala, which represents 90 percent of the national production of goods, with a meeting on the international markets.
Indian production of natural rubber in 2010 were at about 8.5 lakh tonnes set, while total demand for natural rubber in the country nearly 10 lakh tonnes per year.



Rubber producers' societies get aid for computerisation
Aravindan

Kottayam, Jan. 6

The Rubber Board gives financial assistance for the Rubber Producers Societies (RPSs) for acquiring computer and peripherals to facilitate access to information technology (IT)-enabled services, under Rubber Plantation Development Scheme.

The assistance is limited to Rs 45,000 per RPS or 75 per cent of the actual cost of the computer and peripherals. RPSs functioning in their own building or rented building and having uninterrupted trade linkage with companies in the RPS sector, and a good record of performance are eligible for the assistance.

The board will assist 40 RPSs to acquire computer during the current financial year.

The board expects that the usage of IT-enabled services among the rubber planting community will empower the growers with latest information in the field of cultivation world over, and market situation internationally.

The computerisation of RPSs will also enable prompt accounting and make the operations more transparent and, thereby, attract more growers to group activities, which in turn protect them from exploitation by middlemen.

Details are available from the Rubber Board Regional Offices.



Tokyo rubber futures hit another record high

Bangkok (january 06, 2011) : tokyo rubber futures hit another record high on wednesday on the back of strong demand and tight supply, but weaker oil prices and profit-taking limited gains, dealers said. the benchmark rubber contract on the tokyo commodity exchange for june delivery rose 1.9 yen to settle at 428.2 yen ($5.22) per kg. it went as high as 429.4 yen, breaking the previous record of 426.6 yen set on tuesday.
"the rubber trend is still bullish, but technical sentiment was not so good as players took profits from the recent rally, especially when they saw oil prices drop," one dealer said.



Rubber Futures Advance to a Record as U.S. Economy Improves, Yen Weakens

Rubber extended its rally to a record for a third day after data showed improvement in the U.S. economy, boosting expectations demand will expand for the commodity used in tires amid tightening supplies.
June-delivery rubber gained as much as 2.5 percent to 438.8 yen per kilogram ($5,267 a metric ton) before trading at 436.8 yen on the Tokyo Commodity Exchange at 12:18 p.m. local time. The most-active contract has increased 5.4 percent this week, extending last year’s advance of 50 percent.
Japanese stocks climbed and the yen weakened against the dollar after higher-than-estimated growth in U.S. payrolls and service industries bolstered optimism in the world’s largest economy. The data also boosted oil prices above $90 a barrel, raising the appeal of natural rubber as an alternative to synthetic products made from petroleum.
“Strong U.S. data and a weakening yen support the rally of rubber to a new high,” Ker Chung Yang, an analyst with Phillip Futures Pte, said by phone from Singapore. “Stockpiles in Japan have depleted raising concerns of supply shortage,” he said.
Crude rubber stockpiles held at Japanese warehouses fell 2.7 percent to 6,316 tons on Dec. 20, according to data from the Rubber Trade Association of Japan.
China’s natural-rubber inventories were at 66,515 tons, based on a survey of 10 warehouses in Shanghai, Shandong, Yunnan, Hainan and Tianjin, the Shanghai Futures Exchange said Dec. 31. That was 56 percent lower than last year’s high of 151,832 tons.
“Tight fundamentals continue to boost rubber futures,” said Kazunori Kokubo, general manager at the international business section of commodity broker Yutaka Shoji Co. in Tokyo. “I don’t see any factors to sell them at the moment as buyers keep purchasing the commodity, regardless of the price rally.”
Supply Limited
Supply from Thailand, the world’s largest producer and exporter, is set to decline as the nation enters a low- production period next month.
Growers in Thailand will reduce tapping from February to April during the so-called wintering period. The seasonal drop in output may worsen a supply shortage as global demand will keep rising, led by car sales in China and India.
The Thai cash price extended a rally to a record 158.05 baht ($5.22) per kilogram as persistent rain in southern provinces lowered production amid strong demand ahead of Chinese New Year holidays and the low-production period, according to the Rubber Research Institute of Thailand.
U.S. Growth
The U.S. Institute for Supply Management said yesterday that its non-factory index, which covers about 90 percent of the economy, rose to 57.1 in December, exceeding the median forecast of economists surveyed by Bloomberg News and the fastest expansion since May 2006.
ADP Employer Services said yesterday that U.S. companies added 297,000 jobs last month, almost triple the median economist estimate.
The dollar gained the most in three months against the yen yesterday in New York, advancing to as much as 83.38, the highest level since Dec. 23. A weaker Japanese currency raises the appeal of yen-denominated contracts as rubber trades globally in the dollar.
Rubber futures in Shanghai gained as much as 2 percent to the highest level since Nov. 11. May-delivery rubber rose to 38,850 yuan per ton before trading at 38,350 yuan at 11:17 a.m. local time.