Tokyo futures hit 1-week high, upside capped

Tokyo futures hit 1-week high, upside capped
August 24, 2011




BANGKOK, Aug 24 (Reuters) – Tokyo rubber futures rose to a one-week high on Wednesday on the back of steady oil prices and speculative buying, but gains were limited by concerns about the global economy, dealers said.

The benchmark rubber contract on the Tokyo Commodity Exchange <0#JRU:> for January delivery rose 3.7 yen to settle at 361.4 yen ($4.724) per kg.

It rose as much as 2 percent to an intraday high of 364.5 yen per kg, the highest since Aug. 17.

The most active Shanghai rubber contract for January delivery was down 15 yuan to finish at 33,105 yuan ($5,175) per tonne.

“Actually TOCOM sentiment was not bad, but the rises were limited by concerns about a possible global economic downturn and I thinks these concerns could last long,” one dealer said.

Brent crude prices steadied above $109 on Wednesday as investors pinned their hopes on the U.S. Federal Reserve to inject fresh stimulus to boost the world’s largest economy.

Dealers said TOCOM prices were expected to rise further after prices finished above key psychological resistance of 360 yen.





India’s synthetic rubber consumption up 8% in May
August 24, 2011





The country’s synthetic rubber consumption rose by 8% to 35,740 tonnes in May this year, while domestic production declined marginally to 9,468 tonnes in the same period, according to the Rubber Board.

Synthetic rubber consumption and output stood at 33,110 tonnes and 9,522 tonnes, respectively, in the corresponding period of the previous year, the Rubber Board data shows.

Production of synthetic rubber on a month-on-month basis rose by 2% in May, 2011, from 9,262 tonnes in April, 2011. Consumption declined by 3% in May, 2011, from 36,890 tonnes in the corresponding period a year ago.

In the first two months of the current fiscal, synthetic rubber consumption was up by 10 per cent at 72,630 tonnes, as against 65,925 tonnes in the year-ago period, while production rose by 6% to 18,730 tonnes from 17,702 tonnes in the same period last year.

Synthetic rubber is mostly used in the manufacture of tyres in the country.

The auto tyre industry alone consumed 26,022 tonnes of the produce in May this year, which is 11% higher than its consumption of 23,355 tonnes in the year-ago period.

India’s synthetic rubber imports rose by 20% to 31,497 tonnes in May, 2011, from 26,268 tonnes in the same period last year.

The total stock of synthetic rubber in the country at the end of May, 2011, stood at 41,625 tonnes.





Rubber Board focus on Assam
August 23, 2011





GUWAHATI: The national Rubber Board is looking to make Assam one of the leading states in rubber production in the country. The board, which is focusing on the future of rubber production in the northeast, said Assam should come up with a comprehensive policy on rubber plantation and production.

Tripura tops in rubber cultivation in the region, with 55,415 hectare under rubber plantation. Assam is in the second place with 28,102 hectare under rubber plantation.

Tripura produces more than 18,455 tonne of rubber per annum and the volume shows a rising trend. In fact, Tripura has emerged as the second largest rubber producer in the country after Kerala.

“The need of the hour is to formulate a comprehensive policy for rubber plantation and production in Assam.

Tripura could march ahead in rubber production because of a focused policy approach in this sector. We want Assam comes up with a rubber policy as well,” a senior Rubber Board official said over the phone from Kerala.

The official added rubber cultivation is already happening in Assam. “What we need now is to give it a proper boost. So, a focused policy approach is needed to ensure Assam emerges as one of the top rubber-producing states in the country,” he said.

Considering the importance of rubber cultivation in Assam, chief minister Tarun Gogoi has called a meeting with officials of the Rubber Board on August 24. tnn The meeting will be a crucial one on shaping a policy-approach to rubber cultivation in Assam, the official said.

The Rubber Board’s focus has shifted from traditional rubber-producing belts like Kerala and Tamil Nadu to the northeast as far as plantation is concerned.

The Tripura Rehabilitation Plantation Corporation Ltd (TRPCL) of the Tripura government played a crucial role in weaning tribals from shifting cultivation and making them shift to rubber plantation. “Rubber plantation in the northeast has scripted success stories in Tripura, and we are geared up with training and promotional exercises for popularizing rubber plantation in Assam,” the official said.

The board has set up a rubber research and training centre at Hahara in Sonapur on the outskirts of the city to train upcoming rubber cultivators in the state.






Spot rubber prices gain; latex slips



Business Line
KOTTAYAM, AUG. 24:
Spot rubber improved on Wednesday. The prices gained strength possibly owing to a pull back to reduce the gap between the domestic and international futures. There was no selling pressure in the market since RSS 4 rose above the critical Rs 200-level giving hope for a recovery from the recent fall. But the improvement in weather which is expected to initiate an increase in production and arrivals limited the overall gains, an analyst said. The trend continued to be mixed as latex 60 per cent slipped further on low demand.

Sheet rubber improved to Rs 201.50 (200.50) a kg according to traders. The grade increased to Rs 202 (200) a kg both at Kottayam and Kochi according to Rubber Board.

The September series firmed up to Rs 205.51 (205.26), October to Rs 203.50 (203.30), November to Rs 203.30 (202.91), December to Rs 203.99 (202.96), January to Rs 205.99 (203.61) and February to Rs 207.40 (205.16) a kg for RSS 4 on the National Multi Commodity Exchange.

The August futures recovered marginally to ¥351.5 (Rs 211.24) from ¥349.5 a kg during the day session but then dropped to ¥346.4 (Rs 208.15) in the night session on the Tokyo Commodity Exchange. RSS 3 (spot) slipped to Rs 212.90 (213.01) a kg at Bangkok.

Spot rates were (Rs/kg): RSS-4: 201.50 (200.50); RSS-5: 195 (193); ungraded: 186 (184); ISNR 20: 196 (195) and latex 60 per cent: 126 (127).





Spot rubber back above Rs 200 a kg


KOTTAYAM, AUG. 23:
Rubber prices improved further on Tuesday. In the spot market, they extended gains following consistent recovery on the National Multi Commodity Exchange(NMCE).

According to sources, the widening gap between the domestic and international prices and the weakening rupee against dollar may have initiated the recent buying pressure which took RSS 4 back above the Rs 200 level. The trend was partially mixed.

Sheet rubber improved to Rs 200.50 (198.50) a kg, according to traders.

The grade firmed up to Rs 200 (198) a kg both at Kottayam and Kochi, as reported by the Rubber Board.

The September series increased to Rs 205.10 (204.16), October to Rs 203.32 (201.37), November to Rs 203.50 (200.83), December to Rs 203.49 (201.71), January to Rs 204.25 (203.12) and February to Rs 204.52 (202.11) a kg on the NMCE.

The August futures dropped to ¥349.5 (Rs 208.08) from ¥351 a kg during the day session but then bounced back to ¥351 (Rs 208.91) in the night session on the Tokyo Commodity Exchange.

RSS 3 (spot) closed firm at Rs 213.01 (211.12) a kg at Bangkok.

Spot rates were (Rs/kg): RSS-4: 200.50 (198.50); RSS-5: 193 (190); ungraded: 184 (182); ISNR 20: 195 (195) and latex 60 per cent 127 (129).

Keywords: spot rubber