Wednesday, July 18, 2012

NR prices likely to weaken due to lack of demand


The market was supported by expectations for China’s additional stimulus and also due to the speculation that Federal Reserve Chairman Ben S. Bernanke may hint at further monetary easing. Bernanke is going to present the outlook for the world’s largest economy in his semi-annual monetary-policy report.

Global oil prices headed higher, driven by heightened political tensions in the Middle East after bomb attacks against Syria and Israelis. Tensions continue to escalate in the Middle East. Oil edged above $89 a barrel and as investors hoped that the Federal Reserve will eventually provide stimulus to the U.S. economy.

Thailand’s budget for purchases, aimed at supporting prices, may increase to 30 billion baht to buy as much as 200,000 tonnes of natural rubber from farmers. The measures assure that the government is serious in shoring up rubber prices.

RSS4 grade rubber closed weak at `.184 a kg at Kottayam and RSS 3 closed up at `.173.75 a kg at Bangkok. Currently, July futures is trading at ¥236.1 a kg, August at ¥236.5, September at ¥240.3, October at ¥243, November at ¥244.7 and December at ¥246.6 a kg, on the Tokyo Commodity Exchange.

Read lot more in Rubber4U – 1st August 2012 issue

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