Rubber up on NMCE

Rubber up on NMCE
May 31, 2011


AHMEDABAD (Commodity Online): On Tuesday, till 5 pm National Multi Commodity Exchange of India ltd (NMCE) traded in 19 commodities. The total volume is 27384 lots with a turnover of Rs.743.7 crores.

RUBBER FUTURES traded with a total volume of 13084 lots and a turnover of 300Crs. 22Lakhs. The Total Open interest in all series was 5909.June Series gained Rs.710 at LTP at the end of today’s first session at Rs.22950.00. July Series gained Rs.718 at LTP at the end of today’s first session at Rs.23390.00. September Series gained Rs.677 at LTP at the end of today’s first session at Rs.23252.00. August Series gained Rs.610 at LTP at the end of today’s first session at Rs.23370.00. October Series gained Rs.600 at LTP at the end of today’s first session at Rs.23000.00.




Covering buys lift rubber

ARAVINDAN
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KOTTAYAM, MAY 31:
Domestic rubber prices improved on Tuesday. In spot, the market gained strength catalysed by the bounce back on NMCE. Possibility of further decline in arrivals and production owing to monsoon rains kept the covering groups active during the day. Even higher closing prices in the international markets also contributed to the developing bull phase. We expect the market to move up further considering the fundamental and technical charts, an analyst said.

Sheet rubber increased to Rs 223.00 (217.50) a kg according to traders. The grade flared up to Rs 222.00 (218.00) a kg both at Kottayam and Kochi as reported by the Rubber Board.

In futures, the June series bounced back to Rs 229.50 (222.40), July to Rs 233.90 (226.72), August to Rs 233.70 (227.60), September to Rs 232.52 (225.75), and October to Rs 230.00 (224.00) per kg for RSS 4 on National Multi Commodity Exchange (NMCE).

RSS 3 (spot) firmed up to Rs 235.05 (233.50) a kg at Bangkok. The June futures for the grade inched up to ¥ 421.4 (Rs. 232.84) from ¥ 420.0 per kg during the day session but then remained inactive in the night session on Tokyo Commodity Exchange (TOCOM).

The spot rubber rates in Rs per kg: RSS-4: 223.00 (217.50), RSS-5: 220.00 (216.00), Ungraded: 216.00 (214.00), ISNR 20: 211.00 (208.00), and latex 60% : 131.00 (128.50)




Tokyo futures inch higher
May 31, 2011


BANGKOK: Tokyo rubber futures edged higher on Tuesday on the back of firmer oil prices, but the upside was still capped by profit-taking as players remained cautious about recent rises, dealers said.

The benchmark rubber contract on the Tokyo Commodity Exchange for November delivery rose 0.3 yen to settle at 390 yen ($4.817) per kg.

The most-active Shanghai rubber contract for September delivery rose 295 yuan to finish at 32,850 yuan ($5,067.113) per tonne.

“TOCOM sentiment improved and was still supported by firmer oil prices, but it seemed like players did not believe prices could rise much higher so they took profit,” one dealer said.

Brent rose above $115 a barrel on Tuesday as the dollar weakened against a basket of currencies on improved prospects of a bailout for debt-laden Greece.

But the dollar on Tuesday gained against the yen to as much as 81.77 , making it more attractive to buy yen-denominated contracts on TOCOM.

TOCOM rubber was expected to stay firm this week as prices were likely to be trapped in a narrow range of 390 to 400 yen per kg on firm oil prices and limited supply on the physical market, traders said.




Japanese car output fell 60% in April
| May 31, 2011


Tokyo — Japan’s output of cars fell by 60 percent in April 2011 compared with a year ago, in the wake of the 11 March earthquake and tsunami. JAMA, the federation of Japanese vehicle makers said Automobile production in April 2011 was recorded as 292,001 units. Compared with the 731,829 units total recorded for the same month of the previous year, this is a decrease of 439,828 units or 60.1 percent, and production decrease on the same month of the previous year for seven consecutive months.

Truck output in April was down 57.5 percent on a year ago, while bus output was down by a massive 80 percent.

Sales were down by around 50 percent.




Rubber likely to rebound soon
May 30, 2011


KOCHI: Natural rubber prices have seen a steep decline in the past few weeks due to better production and rising imports. However, prices are expected to recover in the coming days as production is about to enter a lean phase with the onset of monsoon.

Spot prices of rubber saw a 11% decline in May as tyre companies decided to postpone their purchase. The tyre companies’ purchases, which accounts for 62% of the total rubber consumption, registered a 25% decline in May, market sources said.

The domestic production of rubber was higher by almost 6% in April. Rubber growers and dealers are of the view that a similar trend would hold good for May also. Production was higher by almost 4% in 2010-11. “Widespread rain guarding of trees and change in import duty structure from 20% to Rs 20 or 20%, whichever is lower, has also contributed to the price fall,” said George Valy, president of Indian Rubber Dealers’ Federation. The import of rubber by the industry stood at 16,668 tonne between April and May 27. However, it is around 35% lower than the imports during the same period of the previous year. The industry is likely to bring in more rubber in the coming days, sources said.

Market analysts are of the view that the prices will bounce back once production enters a lean period during the monsoon. The earlier-than-expected arrival of monsoon showers over the Kerala coast might revive prices as production is expected to see a decline. The prices have already seen a slight increase from Rs 215 per kg on May 28 to Rs 218 on Monday.

In the international market, the prices have been witnessing a fall in the first half of the current month from Rs 245.80 per kg to Rs 230.63. However, by Monday, it recovered slightly to Rs 233.50. Market analysts project further recovery of prices in the international market due to a slowdown in field operations on account of rains. Market sources cite one more reason for the recovery in prices — the tyre companies, which stayed away from the market in May, have to come back for purchases.




Rubber advances on speculation of jump in demand by Beijing
| May 30, 2011 | 0


Tokyo: Rubber gained after data showed supplies in China declined to the lowest level in eight years, stoking speculation the world’s biggest consumer may step up purchases to replenish stockpiles.

November-delivery rubber advanced as much as 1 per cent to 390.9 yen a kg before trading at 388 yen on the Tokyo Commodity Exchange at 11:08am. The most active contract extended last week’s 2.4 per cent advance.

Natural-rubber stockpiles monitored by the Shanghai Futures Exchange fell 3,655 tonnes to 10,291 tonnes, the lowest level since January 2003, the bourse said on May 27. The volume decreased as shipments from Southeast Asian countries declined because of the low-production period from February to May, said Kazuhiko Saito, an analyst at broker Fujitomi Co. in Tokyo.

“Supply remains tight as rain disrupted tapping in Thailand, supporting cash-rubber prices,” Saito said by phone. “Chinese importers, which had delayed purchases on hopes of lower prices, may resume buying.”

Harvest

Farmers in Southeast Asia began harvesting after the low production season. Output from the region’s major producers, which represent 92 per cent of global supply, may miss estimates this year as supplies from Indonesia and Philippines slow, according to the Association of Natural Rubber Producing Countries.

Production may expand 4.9 per cent to 9.94 million tons this year, less than the 5.8 per cent gain forecast last month, the group said in an e-mailed report May 26. Output may increase 5.8 per cent in the second quarter, lower than the 10.5 per cent estimated last month, the group said. Supply jumped 10.1 per cent in the first three months of the year. Import demand is expected to expand in China and Malaysia in the second quarter, although it may decline in India, the group said.

The price of Thai rubber remained unchanged at 156.30 baht (Dh19) a kg on May 27, according to the Rubber Research Institute of Thailand. Gains in rubber futures were limited amid concern that European governments will struggle to resolve the sovereign-debt crisis, damping demand for riskier assets, Saito said.

The euro weakened after Greek Prime Minister George Papandreou said he’ll press ahead with new austerity measures even as he failed to win backing from opposition parties.