Market on Nov 3: Spot rubber prices drop with futures

Market on Nov 3: Spot rubber prices drop with futures
November 3, 2011





KOTTAYAM, NOV. 3:

Domestic rubber prices declined further on Thursday. In the spot market, prices dropped tracking sharp losses on the National Multi Commodity Exchange (NMCE). Sentiments were also affected by the fall in stocks and commodities around the globe, though the local markets still experienced short supplies.

Sheet rubber weakened to Rs 207 (210) a kg, as quoted by the traders. The grade surrendered to Rs 207.50 (209.50) a kg both at Kottayam and Kochi, according to the Rubber Board.

Natural rubber prices falling below $4 a kg in the international market have raised fears over to a default by China. Chinese buyers wanted to renegotiate contracts with Thai sellers following the price fall. It was earlier reported that China had asked to delay as much as 10,000 tonnes of rubber shipments from South-East Asia.

In futures, the November series declined to Rs 206.50 (211.28), December to Rs 204.25 (209.49), January to Rs 204.99 (210.36), February to Rs 206 (210.90), March to Rs 209 (212.89) and April to Rs 209.10 (215.30) a kg on the NMCE. RSS 3 (spot) slipped to Rs 186.69 (186.92) a kg at Bangkok. The Tokyo Commodity Exchange remained closed on account of ‘National Culture Day’.

Spot rates were: RSS-4: 207 (210); RSS-5: 205 (208); ungraded: 197 (200); ISNR 20: 196 (198) and latex 60 per cent: 126.50 (128).







Market on Nov 02: Spot rubber turns weak on global cues
November 2, 2011





KOTTAYAM, NOV. 2:

Physical rubber prices turned weak on Wednesday. There has been no visible selling pressure from dealers or growers and the market lost ground on buyer resistance. Even though the fall in the prices were limited on supply concerns due to widespread north east monsoon rains, sentiments remained under pressure owing to declining international markets, slowing auto sales and rising interest rates. The transactions were dull. Meanwhile the recent dip in natural rubber prices is expected to be a major issue in the ANRPC’s annual conference in China.

Sheet rubber moved down to Rs 210 (212) a kg according to traders. The grade dropped to Rs 209.50 (211.50) a kg both at Kottayam and Kochi as per Rubber Board.

The November series closed at Rs 211.50 (210.05), December at Rs 209.85 (209.84), January at Rs 210.70 (210.77), February at Rs 210.90 (211.15) , March at Rs 212.89 (212.50) and April at Rs 215.30 (215.50) a kg on the National Multi Commodity Exchange.

RSS 3 (spot) declined sharply to Rs 186.92 (194.82) a kg at Bangkok. The November futures weakened to ¥285.4 (Rs 180.15) from ¥291.4 a kg during the day session but then recovered partially to ¥287 (Rs 181.17) a kg in the night session on the Tokyo Commodity Exchange.

Spot rates were (Rs/kg): RSS-4: 210 (212); RSS-5: 208 (210); ungraded: 200 (202); ISNR 20: 198 (200) and latex 60 per cent: 128 (128.50).








NR Prices unchanged on Thursday
November 3, 2011





London — Rubber pricesremained unchanged overnight, remaining below yen 300 in Tokyo. On Tokyo’s Tocom Exchange, prices for the six-month contract closed yen 296 ($3.79) per kg on Thursday 3 Nov. Shorter-dated prices were also unchanged overnight at yen 287.

In Singapore, SGX said RSS3 for April delivery was trading around $3.78 in light trading. TSR20 for delivery in March 2012 was down around $0.12, seeing trades around $3.60.

In India, NMCE said November deliveries recovered half the Rs3 lost yesterday, to close at Rs 211 ($4.27) per kilo.

In China the Shanghai Futures Exchange saw November deliveries fell by half a yuan to close at Yuan 27.1 ($4.26) per kilo.





Natural rubber badly hit by weaker Oil, auto sales and Europe crisis
November 2, 2011





TOKYO/KOCHI (Commodity Online): Rubber futures at Tokyo Commodity Exchange continued the downward trend on Wednesday extending the fall seen on Tuesday trade as Eurozone debt crisis, weak manufacturing data from China and USA hurt market sentiments.

At TOCOM, Rubber April-delivery contract tumbled 4.8% to 293 Yen on Wednesday while near month November contract fell 6% to 285.4 yen. Reflecting the trend, rubber futures at India’s National Multi-Commodity Exchange (NMCE), November conctract fell 1.29% to Rs 21005 per 100 kg while it further fell to Rs 21,000 in Wednesday forenoon trade after opening higher at Rs 21, 280 per 100 kg.

A combination of factors have led to the pull-back in natural rubber prices: falling Crude Oil prices, Eurozone debt crisis that may impact economic growth and demand for commodities, fall in Asian equities and weak automobile sales in India.

Spot rubber prices monitored by Rubber Board have further weakened to Rs 21150 per 1oo kg for RSS 4 grade from Rs 21192 levels at the end of last week. Disruption in supplies due to widespread North East monsoon is providing some support for rubber prices but falling global prices are offsetting such advantage, analysts said.

India’s automobile sales is also falling on higher interest costs and hike in petroleum, diesel prices in recent months. Car sales in country had a poor show even during the current festival season. Maruti’s deliveries to dealers dropped 52 per cent in October while that of Hyundai’s was around 5 per cent. Other major producers like Tata and M&M wholesales could manage some positive figures. Production loss due to strike in Maruti’s two units also resulted in drop in sales.

U.S. auto sales in October are expected to have hit the highest rate in at least eight months, helped by pent-up demand from consumers trading in ageing vehicles and a wider selection of Honda and Toyota brand cars and trucks.

Geojit Comtrade expects NMCE November contract to further fall towards Rs 20,700 and then bounce back. Consistent trade below Rs 20,700 will signal bearishness and fall to Rs 20550/20100.






China Buyers Cancel Some Rubber Cargoes on Prices, Okachi Says
Written by HMH | November 2, 2011 | 0 |





Chinese buyers have canceled or delayed some natural rubber shipments after prices slumped and demand weakened, according to traders at Okachi & Co. and Tower Commodities Co.

Prices tumbled 20 percent in the past three months on concern the Europe debt crisis may derail the global recovery. Tightened Chinaliquidity and weak conditions might cause prices to drop further, leading to more cancellations, said Lizhi Tang, president of the Okachi & Co.’s greater China region.

The amount “isn’t large” now, he said without elaborating. Okachi has the largest open interest in natural rubber futures on the Tokyo Commodity Exchange, according to Tang.

China is the largest rubber consumer, accounting for about 34 percent of global demand last year. China’s auto manufacturing association cut its 2011 sales forecast for the second time in three months on Oct. 11, saying that deliveries are expected to grow less than 5 percent.

“Most of the shipments were bought at the average $4,600-$4,700 a ton at the height of the market, and spot rubber prices have fallen quickly to below $3800 a ton now,” Tang said. The “situation might get worse if prices keep declining.”

April-delivery rubber lost as much as 3.4 percent to 287.8 yen a kilogram ($3,680 a metric ton), the lowest level since Oct. 26, before trading at 293 yen on the Tokyo Commodity Exchange. The price fell for a third day.

Buyers normally pay about 10 percent of the order value as a down payment, so when a price slump more than erases this amount, some buyers have no incentive to stick to the contract, said Forrest Hu, founder of Tower Commodities Co. and a former trader at Louis Dreyfus Commodity Co. Tower commodities trades rubber.