Rubber prices likely to be lower next week

Rubber prices likely to be lower next week
SUNDAY, MAY 8, 2011

Lack of demand especially from China due to its high level of rubber inventory is likely to drag prices in Malaysia down next week.
Thailand also was selling their latex at lower prices compared to the market in Malaysia, a dealer said.
Rising supply from major rubber producing countries could also put pressure on prices, he added.
This week, the Malaysian Rubber Board's official daily physical price for tyre-grade SMR 20 dropped 114.5 sen to 1,363.5 sen per kg from 1,478 per kg while latex-in-bulk fell 43.5 sen to 985.5 sen per kg from 1,029.0 sen per kg.
Meanwhile, the unofficial price for tyre-grade SMR 20 fell 105.0 sen to 1,365.0 sen per kg from 1,470.0 sen per kg and latex-in-bulk slipped 43.0 sen to 982.0 sen per kg from 1,025.0 sen per kg.
The market will close on Monday due to Labour Day holiday. -- Bernama
(Source: http://www.btimes.com.my/Current_News/BTIMES/articles/20110430114930/Article/index_html)







India: Spot rubber slips further
SUNDAY, MAY 8, 2011

KOTTAYAM, MAY 6:
Spot rubber weakened further on Friday. Sharp declines in the Japanese futures and the absence of genuine buyers in the domestic scene kept the traders under pressure during the day. Marginal recovery on the NMCE failed to strengthen the sentiments since the near month May series ruled below the prevailing price in the physical market.
Sheet rubber moved down to Rs 226.50 (227.50) a kg according to traders. The grade dropped to Rs 227 (230) a kg both at Kottayam and Kochi as per Rubber Board.
In futures, RSS 4 recovered partially at its May series to Rs 224.60 (221.53), June to Rs 231.60 (227.04), July to Rs 234.60 (230.30), August to Rs 233 (227.40) and September to Rs 229 (224.85) a kg for on the National Multi Commodity Exchange (NMCE).
The Key Tokyo rubber futures plunged to touch the lowest level in almost two months. “It was not only the weaker oil prices and other falling commodities that dragged TOCOM down, but also the strengthening Japanese yen that triggered stop-loss selling on rubber futures,” an analyst said.
The May futures nosedived to ¥403 (Rs 224.40) from ¥427 a kg for RSS 3 during the day session but then remained inactive in the night session on the Tokyo Commodity Exchange (TOCOM). RSS 3 (spot) closed at Rs 236.27 a kg at Bangkok. Spot rates were (Rs/kg): RSS-4: 226.50 (227.50); RSS-5: 225 (225.50); ungraded: 219 (221.50); ISNR 20: 219 (220) and latex 60 per cent: 139 (141).
(Source: http://www.thehindubusinessline.com/industry-and-economy/agri-biz/article1996932.ece)




Key tocom rubber futures plunge
SUNDAY, MAY 8, 2011

Tokyo (may 07, 2011) : key tokyo rubber futures plunged on friday, dragged lower by a slump in commodities across the board on concerns about a global economic slowdown. the benchmark rubber futures contract on the tokyo commodity exchange for october delivery dropped more than 8 percent to 354.3 yen per kg from monday's settlement of 386.8 yen. japanese financial markets were closed from tuesday to thursday for national holidays.
trade in rubber futures was halted earlier after circuit breakers were hit as the price for the key contract at the open indicated a fall of over 9 percent, or more than 30 yen. the singapore exchange (sgx) will offer rubber futures starting may 16, moving the contracts over from the singapore commodities market (sicom) platform to give it greater liquidity, the exchange announced on friday. the sicom tsr 20 and sicom rss 3 rubber futures will be moved over from sicom and offered on the sgx platform with the tsr 20 contracts traded over-the-counter allowed clearance through sgx asiaclear come may 16.
(Source: http://www.brecorder.com/news/agriculture-and-allied/world/1186009:key-tocom-rubber-futures-plunge.html?hl=rubber)





Rubber prices to slip over 12% in May on higher supply
MONDAY, MAY 9, 2011

NEW DELHI: Domestic rubber prices are likely to decline by over 12 per cent to Rs 200-215 per kg this month on higher domestic supplies due to ongoing tapping in Kerala and Tamil Nadu, according to industry experts.
The commodity prices have been falling since April 25; they closed lower last week at Rs 228 per kg after touching this year's high of Rs 241 per kg last month.
Indian Rubber Dealers Federation (IRDF) and Cochin Rubber Merchants Association (CRMA) have said that domestic prices could further decline in the range of Rs 200-215 per kg by month-end on expected higher supply in the domestic market.
"We expect the prices to decline further in the coming days as tapping will continue till May-end," IRDF President George Valy told PTI.
Tapping generally takes place in summer till the commencement of south west monsoon.
CRMA Ex-President N Radhakrishnan said, "The rubber price outlook seems weak for May as more supplies are coming into mandis. I think they would rule at around Rs 215 per kg."
He also said that farmers could hold back the stock after May 20 in anticipation of higher prices.
Even in the global market, rubber supply is expected to rise in the coming days in major rubber growing countries where tapping has begun. As a result, prices are also expected remain on a sluggish side, said an analyst with commodity brokerage firm Geojit Comtrade.
With the Reserve Bank increasing short-term borrowing rates and its likely effect in terms of higher interest on auto loans may also weigh in on the domestic demand for this commodity, he said.
Meanwhile, the domestic futures prices of natural rubber are expected to trade on the weaker side in line with the global market and strong industry fundamentals.