Tokyo Futures Lower, Tracking Oil And Stocks

Tokyo Futures Lower, Tracking Oil And Stocks
June 16, 2011



Tokyo rubber futures inched lower on Thursday (June 16) as pessimism over prospects for the U.S. economy and escalating debt woes in Greece weighed on the global stock and commodities markets, though the yen’s fall against the dollar lent support.
FUNDAMENTALS
The key Tokyo Commodity Exchange rubber contract for November delivery was down 5.0 yen or 1.3 percent at 381.2 yen per kg as of 0055 GMT.
The most active Shanghai rubber contract for September delivery rose 730 yuan to finish at 33,500 yuan ($5,170) per tonne on Wednesday (June 15).
The dollar held at three-week highs against a basket of major currencies in Asia on Thursday (June 16), having staged its biggest rally in 10 months on a wave of short-covering as concerns over Greece’s debt crisis hammered the euro.
Oil slid more than 4 percent on Wednesday (June 15) as signs of further economic weakness fed demand worries and a rising dollar weighed, triggering technical sell stops and sending U.S. crude to its lowest since February.
MARKET NEWS
Sentiment among Japanese manufacturers rose in June for the second straight month and is seen improving further in the coming quarter, a Reuters poll showed, underlining prospects for the economy’s recovery from the March 11 earthquake.
Discussion of plans for the Renault-Nissan alliance to take a majority stake in Russia’s AvtoVAZ is likely to take a few more months, a source familiar with the matter said.
Japan’s Nikkei business daily reported on Thursday (June 16) that Nissan Motor Co was in the final stages of talks to take a stake of about 25 percent in AvtoVAZ for up to $1 billion. Partner Renault SA already owns 25 percent of AvtoVAZ, Russia’s biggest car maker.
Prospects for a step-up in U.S. economic growth in the second half of the year are becoming clearer.
No.2 U.S. automaker Ford Motor Co expects its profit for the rest of the year to ease off from the 13-year high it reported for the first quarter, pinched by higher commodity costs, an executive said.
Tokyo stocks on Thursday (June 16) tracked Wall Street lower after it tumbled on escalating Greek debt woes and as U.S. data showed the world’s No.1 economy is facing a troubling mix of higher prices and weak growth, pointing to further losses.
Chinese industrial output in May beat market expectations with a 13.3 percent rise from a year before, compared with April’s 13.4 percent expansion, according to the National Bureau of Statistics (NBS).
(Reuters, June 16, 2011)







Rubber market on June 15: Mixed trend in rubber
June 15, 2011


KOTTAYAM, JUNE 15:
Spot rubber saw a mixed trend on Wednesday. The undercurrent was firm as RSS 5 and ungraded rubber improved following comparatively better demand.

Weather variations seemed to have confused traders who decided to wait for clarity after the expiry of the June futures on the National Multi Commodity Exchange.

According to traders, sheet rubber finished flat at Rs 227.50 a kg amidst low volumes. The grade improved to Rs 227.50 (227) a kg both at Kottayam and Kochi, according to the Rubber Board.

The June series expired at Rs 229.25 (227.39) while the July series weakened to Rs 230.70 (231.93), August to Rs 232.43 (234.06), September to Rs 231.45 (232.58), October to Rs 229.01 (231.28) and November to Rs 229.80 (230.25) a kg for RSS 4 on NMCE.

RSS 3 (spot) slipped to Rs 231.65 (232.20) a kg at Bangkok. The June futures for the grade recovered to ¥414 (Rs 229.58) from ¥411.9 a kg during the day session and then to ¥416 (Rs 230.68) in the night session on the Tokyo Commodity Exchange.

Spot rates were (Rs/kg): RSS-4: 227.50 (227.50); RSS-5: 226 (225); ungraded: 222 (222); ISNR 20: 224 (223) and latex 60 per cent: 143 (143).




‘Kerala rubber convention can help showcase technology’
June 15, 2011


KOCHI, JUNE 15:
The Confederation of Indian Industry and the Rubber Board organised a one-day conference in Kottayam to create a platform showcasing developing technologies and ideas related to rubber processing. The theme of the conference, held under the banner of Kerala Rubber Convention 2011, was “Sustainable rubber manufacturing and processing.”

Inaugurating the session, Ms Sheela Thomas, Chairperson of Rubber Board, Government of India, said, “Kerala Rubber Convention will create a platform for showcasing technology, ideas and solutions and help rubber planters and micro, small and medium industries as well as regional and national players to attain economic sustainability in their operations.” The conference was also expected to enhance technological interventions and highlight Kerala’s potential as a promising investment destination.

India is the fourth-largest producer and third-largest consumer of natural rubber in the world. Over one million people are directly involved in farming of rubber, while another six million people are indirectly associated with this business. There are around 4,500 manufacturing units dependent on rubber.

STATE’S ECONOMY BENEFITS

Rubber is seen as key to the development of Kerala. The recent rally in rubber prices is estimated to have contributed significantly to the 10 per-cent-growth registered by the State’s economy. Close to 92 per cent of the nine lakh tonnes of rubber produced in India comes from Kerala.

“Today’s session will enhance technological intervention and highlight Kerala’s potential as a promising investment destination. This will also provide a platform for business meetings and knowing more about financing options,” Mr K.T. Thomas, Chairman of Kerala Rubber Convention 2011 and Director of Paragon Polymer Products, said.