Tuesday, January 8, 2019

Sentiment remains bearish

Oil prices rose on hopes that US-Chinese talks in Beijing would bring a halt to trade disputes between the world's biggest economies, while OPEC led supply cuts tightened markets. International Brent crude futures were at $57.77 per barrel, while US West Texas Intermediate (WTI) crude oil futures were at $48.85 per barrel.

The Indian rupee plunged by 53 paise to close at 70.21 against the US dollar amid renewed concerns over widening of current account deficit following constant rise in global crude oil prices.

Western India’s automotive exhibition ‘Pune Auto Expo’ will be inaugurated by Maharashtra chief minister Devendra Fadnavis at Ganesh Kala Krida indoor stadium-Pune, on 11th January.  The four-day exhibition theme scheduled during 11 - 14 January 2019 is eco-friendly transportation of smart city. There will be two days of technical conference, business meets and industrial visits to automobile companies in the region. Experts will share their knowledge and deliberate on topics focusing on the technological trends and business practices.

The International Tripartite Rubber Council, comprising of Indonesia, Malaysia and Thailand are meeting in Bangkok on 19th and 20th January 2019 to find ways to boost rubber demand.

Overall sentiment remains bearish due to subdued demand from tyre manufacturers and expectations of a rise in global rubber output. However, a spike in crude oil prices due to a cut in output by West Asian and other producers might lend support to rubber prices.

The benchmark RSS4 grade rubber closed at `.124.50 a kg at Kottayam, while RSS3 grade closed at `.108.37 a kg at Bangkok and Malaysian SMR20 closed at `.96.51 a kg. On ICEX, January 2019, the futures closed at `.126.08 a kg, February at `.128.05, March at `.130.19, April at `.125.64, May at `.126.91 and June closed at `.128.17 a kg. Tokyo Commodity Exchange January 2019 futures series closed at ¥181.4 a kg, February at ¥180.2, March at ¥181.4, April at ¥181.7, May at ¥181.8 and the contract for delivery in June 2019 closed at ¥181.6 a kg. On Wednesday, most probably Tocom futures contract for delivery in June 2019 may trade in the range of ¥182 & ¥188 a kg.

To read Rubber4U – 15th January 2019 issue: http://rubber4u.com/Public/Abcd.pdf
For 2018-19 Rubber Forecast: http://rubber4u.com/Public/RForecast.pdf

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