A slump in the prices of crude oil deepened following
the release of Chinese trade data that appeared to confirm market expectations
that demand will remain slack. The market is also concerned about demand in
Europe and that a possible rise in US interest rates this year could lift the
value of the US dollar, which would raise the cost of commodity imports for
many buyers around the world.
Spot rubber continued to remain almost
unchanged with RSS4 closing at `.118.50 a kg.
Domestic market sentiment has been bearish for long due to lukewarm demand from
tyre manufactures and weakness in crude oil prices.
According to the data released by the Rubber
Board, the production in July 2015 stood at 52,000 tonnes, 3.7% lower than the
output in the same month of previous year. However, the overall deficit in
production for the period April to July 2015 came to 14.03% at 190,000 tonnes. As
tyre manufacturers trimmed imports expecting a further fall in rubber prices,
India's natural rubber imports in July dropped 14.62% to 36,828 tonnes. Natural
rubber stock increased by 19.79% in July when compared to same month of 2014.
The benchmark RSS4 grade rubber closed at `.118.50
a kg at Kottayam, while RSS3 grade closed at `.99.64 a kg at
Bangkok and Malaysian SMR20 closed at `.85.66 a kg. On
National Multi Commodity Exchange August 2015 futures closed at `.117.39
a kg, September at `.116.80 and October at `.116.61 a kg. On
Tokyo Commodity Exchange, August 2015 futures series closed at ¥185.8 a kg,
September at ¥188.8, October at ¥191.7, November at ¥193.4, December 2015 at ¥195.3
and the contract for delivery in January 2016 closed at ¥196.7 a kg. On Tuesday,
most probably Tocom futures contract for delivery in January 2016 may trade in
the range of ¥194.2 & ¥200 a kg.
To read Rubber4U – 15th August
2015 issue: http://rubber4u.com/Public/Abcd.pdf
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