Thursday, April 4, 2013

FTP 2013-14 by 3rd week of April and rubber falls

The Finance Minister, P Chidambaram in his Budget Speech had assured full support to be provided to exporters in the backdrop of growing current account deficit. It is expected that the Annual Supplement to the Foreign Trade Policy 2013-14 would be announced by the third week of April, which will address both the immediate and medium-term concerns of exports, besides giving a fillip to exports. During the April-February 2012-13, exports declined by 4% to US$265.95 billion. It is expected that the incentives would help in boosting exports and bridging the widening trade deficit.

Natural rubber prices dropped the most in two weeks as the Japanese currency strengthened to near a one-month high. The yen advanced amid speculation that additional easing measures from Bank of Japan. The sell-off is caused by the strong yen and lower-than-expected U.S. payroll data. The contract for delivery in September slumped to ¥252 a kg, the lowest since 19th November and closed at ¥258.5 a kg on the Tokyo Commodity Exchange. Investors reduced their positions in rubber due to holidays in China and tense situation in the Korean peninsula.

Today, in the domestic futures market, the April 2013 series is currently trading at `.161.75 a kg, May at `.164.30, June at `.164.30, July at `.164 and August at `.164.30a kg on the National Multi Commodity Exchange. In the domestic market RSS4 grade rubber closed at `.164.50 a kg and the price of RSS3 grade closed at `.153.46 per kg at Bangkok. While Malaysian SMR 20, closed at `.139.67 a kg.

Read lot more in Rubber4U – 15th April 2013 issue

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