Thursday, September 24, 2015

Sentiment remains uncertain

Today, Tokyo Commodity Exchange rubber futures fell after long national holiday in Japan and slowing demand in China due to biggest fall in China’s factory activity. The Tocom rubber contract for February delivery had fallen ¥5.7 per kg. According to a private survey, activity in China’s factory sector unexpectedly shrank to a six and half year low in September, raising fears of a sharper slowdown.

The Shanghai rubber futures contract ended lower over concerns of slowing demand from China's automobile industry. Overall investor sentiment remains uncertain after the Federal Reserve declined to raise interest rates for the first time since 2006 last week.

Oil prices, along with the overall commodities sector, have been increasingly sensitive to any negative news on China's economy in recent weeks. Global oil markets tumbled on Wednesday, and on Thursday closed in green, WTI crude futures closed at US$ 44.91 per barrel, while Brent crude futures closed at US$ 48.17 a barrel.

Today the benchmark RSS4 grade rubber closed at `.112 a kg at Kottayam, while RSS3 grade closed at `.87.42 a kg at Bangkok and Malaysian SMR20 closed at `.80.92 a kg. On National Multi Commodity Exchange October 2015 futures closed at `.114.45 a kg, November at `.113.80, December at `.113.92 and January 2016 closed at `.114.09 a kg. On Tokyo Commodity Exchange, September 2015 futures series closed at ¥156 a kg, October at ¥155.4, November at ¥158.6, December 2015 at ¥161.5, January 2016 at ¥164.2, and the contract for delivery in February 2016 closed at ¥165.6 a kg.

To read Rubber4U – 1st October 2015 issue:
For 2015-16 Rubber Forecast:

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