Tokyo Futures Rebound As Other Commodities Steady

Tokyo Futures Rebound As Other Commodities Steady
WEDNESDAY, APRIL 20, 2011

Key Tokyo rubber futures rebounded on Wednesday (Apr 20), snapping a six-day drop, as sentiment improved with other commodities markets stabilising from a sharp drop the day before on wariness over the recent rapid pace of gains.
FUNDAMENTALS
The key Tokyo Commodity Exchange rubber contract for September delivery rose 5.8 yen or 1.4 percent to 415.5 yen per kg as of 0018 GMT.
It fell 5 percent to a three-week low on Tuesday (Apr 19) after Standard & Poor's warning that it may cut the United States' AAA credit rating triggered heavy stop-loss selling while weaker oil added to the downward pressure.
The most-active Shanghai rubber contract for September delivery fell 1,090 yuan to settle at 33,870 yuan ($5,187.868) per tonne on Tuesday (Apr 19).
U.S. oil prices were steady in early trade on Wednesday after rising the day before in volatile trade as a weaker dollar and stronger equities lifted prices and offset concerns over sovereign debt and uncertain demand prospects.
The euro and commodity currencies like the Australian dollar rose early in Asia on Wednesday, having staged a rebound as investors bought them again after a mild shake-out of stretched long positions at the start of the week.
(Reuters, April 20, 2011)




Natural rubber up on global cues
WEDNESDAY, APRIL 20, 2011

NEW DELHI, APR 20:
Natural rubber prices on Wednesday rose by Rs 3 to Rs 239 a kg in the domestic spot markets on back of rise in prices in global futures and spot markets.
The prices of natural rubber yesterday were ruling at Rs 236 a kg in the domestic markets, according to the Rubber Board.
“Rubber prices internationally are facing speculation which is responsible for the rise in prices in both the futures and spot markets,” Indian Rubber Dealers Federation President, Mr George Valy, told PTI.
Futures and spot markets in India are following the trends in the global markets, he added.
The rate of natural rubber in the international physical market at Bangkok today rose by Rs 5.76 to Rs 263.02, compared to Rs 257.26 a kg yesterday, Rubber Board data said.
Similarly, TOCOM, rubber futures prices for May delivery were ruling at 457.8 yen a kg (Rs 245.30/kg), up 3.4 yen (Rs 1.82/kg) from their last trading price.




Rubber becomes hot, plantations across the globe zooms
WEDNESDAY, APRIL 20, 2011

COCHIN (Commodity Online): Rubber farmers across the world are doing what they can do the most from their farm – over tap the rubber trees.
They do it because the prices are at its pinnacle and a correction could be round the corner. Output has increased because of this milking and Indonesia alone will be producing an estimated 2.972 million tonnes of rubber this year as against 2.736 million tonnes last year. Farmers in the world’s second largest Rubber producing region is expecting a correction any time but according to Indonesian Rubber Association (Gapkindo) Rubber prices will average $4.5 per kg this year even after a slight correction.
In the meanwhile, the Tokyo Rubber futures fell to a two week low as September contract fell 10.1 yen to settle at 425.0 yen per kg.
Rubber had struck $6 in the Indonesian market but then dropped on Middle East worries and the Japan Earthquake. Additionally most automakers in Japan are producing vehicles at half their production capacity which has put pressure on the stocks.
Thailand, Indonesia and Malaysia, the three top rubber producing nations had made an effort to jack up the prices on the worrying production hit in Japan.
According to International Rubber Study Group, demand for rubber across the globe, both natural and synthetic, is expected to rise to 26.1 million tonnes in 2011 from 24.4 million tonnes in 2010.
In the meanwhile many countries are now plunging into rubber production as they see value in it. Colombia has increased its rubber production ten times in the past decade. From merely countable acres, the estimated rubber production is now around 25,000 acres. Production in 2010 was around 3200 tons and this is likely to increase ten fold in another 10 years.




Rubber production figures swings, prices fluctuate
WEDNESDAY, APRIL 20, 2011

COCHIN (Commodity Online) : NMCE Rubber prices are in downtrend on the global sentiments despite a production decline data and a looming supply-demand deficit of Rubber.
Thailand is facing flood fury and plantations are facing severe damage. But according to a report by Reuters quoting Luckchai Kittipol, president of the Thai Rubber Association, the world's biggest producer can still produce 3.46 million tonnes this year which is almost 1 per cent down from the previous year.
Middle East crisis and the Japan quake has already rattled the Rubber price momentum putting it in a swing with a major traders unable to put a fixed position. During the quake, many traders were unable to even get out of their positions because there were not enough buyers in the electronic platform as well as the spot markets.
Prices of Rubber has been varying in almost all the parts and it could average this year around 4.5$ per kilogram. Many believe this should ideally go above $5 only after which the farmers can get their due.
But the Rubber consumers and buyers are not in favor of such tactics and say their cost is increasing manifold and is unable to pass it on to the end users.




India: Rubber output increases 7.4% in March
WEDNESDAY, APRIL 20, 2011

Mumbai: India’s natural rubber production in March rose 7.4% on year to 54,400 tonne, the state-run Rubber Board said in a statement on Tuesday, as record high prices prompted farmers to increase tapping.
The south Asian country’s production during April 2010 to March 2011 stood at 8,61,950 tonne, up 3.7% on year, it said.
“Weather was conducive for tapping in March. In April also production is likely to be on higher side. We got rainfall in the past few days. It should boost tapping in coming days,” said Ibrahim Jalal, treasurer, Indian Rubber Dealers Federation (IRDF).
The world’s fourth biggest producer’s consumption rose by 3.6% to 81,500 tonne in March from 78,650 tonne in the year-ago period, the Rubber Board said.
Consumption during April-March stood at 9,49,205 tonne, up 2% on year, as tyre makers stepped up purchases to cater to ballooning tyre demand from the auto sector.
Imports halved in March to 6,200 tonne, while during April-March they stood at 1,77,482 tonne, largely steady compared to 1,76,756 tonne a year ago.
The benchmark May rubber contract on India’s National Multi-Commodity Exchange (NMCE) was trading 1.3% lower at R23,700 per 100 kg at 1004 GMT on Tuesday.