India: Rubber farmers to enter futures trading

India: Rubber farmers to enter futures trading
August 4, 2011





KOZHIKODE: The rubber farmers in and around Chakkittapara in the district will soon get benefits of the commodity futures trading under a Nabard project to be carried out through Viswamitra Farmers Club. The commodity futures trading is an agreement to buy or sell a commodity at a predetermined price and date.

“Rubber from about 300 farmers of Chakkittapara will be collected with the help of Viswamitra Farmers Club and stored in the godown of the Centre Warehouse Cooperation for future trading. The rubber stored will be made available at commodities exchange and through the exchange, the rubber will be sold at a predetermined price,” Nabard AGM Nagesh Kumar told Express.

Of the 2,000 farmers clubs in the state, Viswamitra Farmers Club will be the first one to use commodity futures trading for rubber, he said. “With the introduction of commodity futures trading, the profit of the farmer in futures trading could be assured. At present, the farmers are able to sell their goods at spot price only or have to preserve the goods hoping the price will improve in the future. By introducing futures trading, the farmers will be able to sell rubber for a higher amount, which varies based on several factors. Nabard is trying to introduce the farmers to the initiative, thus giving an option for the farmers to select whichever mode profitable,” he pointed out.

Nabard is expecting to roll out the project by November. “We are aiming to collect 10 tonnes of rubber a week from the farmers and sell it through commodity futures trading. The farmers will be given assistance through Chakittapara Service Cooperative Bank,” the AGM said. “The farmers club will need temporary storage godown, commodity trading centre with online facility, an office manager and transportation facilities to sell the product in commodity exchanges. The farmers’ club already has a commodity trading centre with online facility,” he said.

With the project, the farmers will get the benefits of the futures trading and can opt between spot trading and future trading estimating the profit gain, he pointed out. “About 300 small-scale farmers will get the benefit of the initiative. The farmers, who are not members of the farmers’ club, will also be included in the project,” he added.




China rubber industry to pick up in second half
Written by HMH | August 4, 2011 | 0 |





Beijing — China’s rubber industry is on a downward trend, but the momentum has slowed, according to a report from the China Rubber Industry Association on the first six months of 2011. However, with higher selling prices, the value of the business is sharply up on last year.

According to CRIA, the total output of its 400 member companies involved in all aspects of the rubber industry increased sales by 20 percent, to Yuan 144.2 billion (euro 15 743 million) in the first six months, compared to the same period last year. Exports were up by 33 percent, to yuan 40 billion. Aggregate pre-tax profit increased slightly, while aggregate after-tax profit fell

While total industrial output increased by 21 percent, output of tyres increased by only 2.4 percent. Sales revenue, however, increased by 20.3 percent, reflecting higher sellingprices. Export revenues increased by 33 percent. Radial tyre production increased by 5.9 percent

In general industrial rubber goods, the value of industrial output grew by 40 percent, while exports almost doubled, . Within this growth, O-ring production grew by 45 percent and automotive AVS products increased 40 percent.

In the carbon black segment, exports more than doubled

Overall, the CRIA saidd growth was slower than this time last year, largely due to the increased cost of raw materials, but also due to the downturn in the automotive sector. However, the signs are that automotive sales may be recovering, as June figures showed a slight rebound. The CRIA said it expects growth to [ick up in the second half due to improved raw material prices and increased automotive sales.







Natural rubber prices show little change despite stock market meltdown (Aug 5)
August 6, 2011





LONDON (Aug. 5, 2011) — On Tokyo’s Tocom Exchange, prices for the six-month contract for natural rubber (NR) remained unchanged overnight, trading at yen 390.5 ($4.97) per kg on Aug. 5. Shorter-dated prices were also unchanged at yen 382.

In Singapore, the Singapore Exchange Limited (SGX) said trading was quiet, with November 2011 deliveries trading around $4.80, some $0.04 down yesterday when a number of stock exchanges worldwide tumbled. TSR 20 for delivery in December 2011 was trading down around $0.10 at $4.63.

In India, the National Multi Commodity Exchange of India Ltd. (NMCE) saw September deliveries unchanged at around Rs 211 ($4.71) per kilo.

In China, the Shanghai Futures Exchange saw prices down by nearly a yuan, with August deliveries trading at around Yuan 33.5 ($5.20) per kilo.






Malaysia: Rubber prices to stay at current level
August 7, 2011





The Malaysian rubber market is likely to stay at current levels next week with regional markets in a state of volatility amid uncertainties over the global economic situation, dealers said.

Another dealer said if the ringgit were to weaken, rubber prices might be further adjusted to stay parallel with other regional markets.

Throughout the week, local rubber prices underwent range bound trading, with prices of the SMR 20 hovering between 1,383 sen per kg to 1,398 sen per kg while latex-in-bulk was traded around 884.5 sen per kg to 888.5 sen per kg.

On a week-to-week basis, the Malaysian Rubber Board official physical noon price for tyre-grade SMR 20 increased 0.5 sen to 1,383 sen per kg from last Friday’s 1,382.5 sen per kg,while latex-in-bulk was flat at 886 sen per kg.

The unofficial closing price for tyre-grade SMR 20 dropped three sen to 1,378 sen per kg against 1,381 sen per kg from last week while latex-in-bulk declined 2.5 sen to 882.5 sen per kg against the 884.5 sen per kg previously. — Bernama