Thursday, September 10, 2015

Rubber growers worried

According to news report, China plans to launch a Yuan denominated international benchmark for crude oil futures this year. The contract will be traded at the Shanghai International Energy Exchange and will be a price reference for medium sour crude, a variety preferred by Asian players. While Iran has reduced the quarterly price for its flagship crude to the lowest in three years in a bid to lure Asian buyers. The price reduction is just one of the steps taken by the OPEC producer to ramp up output and regain market share lost since U.S and European sanctions aimed at its nuclear program.

The All Rubber Planters’ Association has expressed concern over reduction in the tapping activities, due to fall in the rubber price. The tapping has come down by 30 to 40% in recent times and has demanded that the government hike the import duty on natural rubber to protect the domestic growers.

There are around 2 lakh hectares of land is available for expansion in Karnataka, of this, around 55,000 growers in the State have ventured into rubber cultivation on an area of around 50,000 hectares of land. They produce around 40,000 tonnes of natural rubber a year. With the crash in the prices of natural rubber, tapping of rubber from trees has come down by almost 40% during the year. While the re-planting in old rubber plantations has been stopped now, expansion of rubber crop in new areas has also come down drastically, said P Gopalakrishna Bhat, secretary of the association.

A seminar of rubber growers of Karnataka will be held at Jain Bhavan, Bypass Road, Puttur in Dakshina Kannada on 11th September at 11 am, to discuss and mitigate the woes of rubber growers. The seminar will be inaugurated by district minister B Ramanath Rai.

Today the benchmark RSS4 grade rubber closed at `.112 a kg at Kottayam, while RSS3 grade closed at `.90.78 a kg at Bangkok and Malaysian SMR20 closed at `.83.50 a kg. On National Multi Commodity Exchange September 2015 futures closed at `.113.86 a kg, October at `.113.17, November at `.113.09 and December closed at `.112.92 a kg. On Tokyo Commodity Exchange, September 2015 futures series closed at ¥160.7 a kg, October at ¥164.8, November at ¥166.5, December 2015 at ¥169.9, January 2016 at ¥171.8, and the contract for delivery in February 2016 closed at ¥172.9 a kg. On Friday, most probably Tocom futures contract for delivery in February 2016 may trade in the range of ¥175 & ¥179 a kg.

To read Rubber4U – 15th September 2015 issue:
For 2015-16 Rubber Forecast:

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