Rubber futures in Tokyo and Singapore slumped
on 1st October to the lowest levels since 2009, suggesting the producers may
need to take more drastic measures. Thailand and Malaysia have thrown their
support behind an Indonesian proposal to set a $1.50 per kg minimum floor price
plan. The measure will prevent natural rubber price from falling further and
revive market sentiment. While Indonesian Rubber Association’s (GAPKINDO) move
to reach out to other major growers in a call for action is viewed as a
positive step by growers. Previous efforts to shore up prices by the three
Southeast Asian producers have had little success in the face of abundant
supply and weaker demand.
While addressing the reporters, Kerala Chief
Minister Oommen Chandy said that the state government has decided to increase
the use of rubber based bitumen for making and repairing roads and Public Works
Department would order more rubber based bitumen from Bharat Petroleum
Corporation’s Kochi Refinery. The minister further added that the hike in land
registration fee and stamp duty will not be reduced or withdrawn.
On Wednesday, the benchmark RSS4 grade rubber
closed at `.121.50 a kg at Kottayam, while RSS3 grade closed at `.95.56
a kg at Bangkok and Malaysian SMR20 closed at `.89.15 a kg. On
National Multi Commodity Exchange October 2014 futures closed at `.120.34
a kg, November at `.118.14, December at `.117.88 and January
2015 at `.117.65 a kg. Today, Tokyo Commodity Exchange, October
2014 futures series closed at ¥166.3 a kg, November at ¥170.6, December at ¥172.7,
January 2015 at ¥174.9, February at ¥175.6 and the contract for delivery in
March 2015 closed at ¥175.4 a kg.
Read
lot more in Rubber4U – 15th October 2014 issue
For
2014-15 Rubber Forecast, http://rubber4u.com/Public/RForecast.pdf
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