Wednesday may see ¥300 a kg mark

Positive cues from global markets provided support to the benchmarks; prices moved higher, investor confidence was boosted with US leading indicators and consumer sentiment moving higher than expectations.

The yen traded at 102.63 per dollar after touching 103.31 on 17th May, the weakest level since October 2008. Japan’s currency came under pressure after the U.S data, adding to optimism that the recovery of the world’s largest economy may be picking up. The contract for delivery in October on the Tokyo Commodity Exchange gained to ¥292.5 a kg and finally settled at ¥289.5 a kg, the highest level at the close since 13th May. It is estimated that by Wednesday, the October delivery may touch ¥300 a kg mark. 

According to the Rubber Research Institute of Thailand, rubber free-on-board rose to 89.85 baht a kg. Trying to prevent fluctuation in the price of natural rubber, Thailand's Agriculture and Cooperatives Ministry has set a price of 110 baht per kg. According to Thai Agriculture and Agricultural Cooperatives agency, the nation’s biggest producer and exporter, is targeting a price of 110 baht a kg for 2013. The daily momentum has once again turned positive, indicating that the index is likely to find strong support in case of any dips.

According to Rubber Board of India, natural rubber imports in April fell 38% on year to 10,871 tonnes as user industry trimmed overseas purchases due to a sharp drop in domestic prices. Consumption rose 3.8% to 82000 tonnes, while production increased by 0.6% to 53000 tonnes on y-o-y basis.