Thursday, April 11, 2013

Market is supported by expectations


Rubber gained as Japan’s currency neared 100 per dollar, a level unseen since April 2009, bolstering demand for the yen-based commodity. The currency market gave the largest support to rubber futures, which advanced amid expectations top producers may take additional measures to support rubber prices. The contract for delivery in September advanced as much as to ¥280.8 a kg, the highest level since 28th March and currently trading at ¥278 a kg on the Tokyo Commodity Exchange.

While addressing at the opening of the ASEAN Rubber Seminar in southern resort province, Thailand deputy farm minister, Yuttapong Charasathien said, Thailand will set up a rubber-processing industrial estate in the southern province of Songkhla to be fully engaged in producing and marketing in parallel to a similar rubber park in Malaysia. Thailand targets to lower shipments by 10% through end of May to help support prices.

In India, natural rubber production in 2012-13 increased 0.9% to 912,200 tonnes from 903,700 tonnes, while consumption edged up slightly 0.8% to 971,980 tonnes from 964,415 tonnes compared to same period of previous year. In March 2013, natural rubber consumption edged up 6% to 79,000 tonnes against 74,500 tonnes in March 2012. While natural rubber production was 52,000 tonnes against 55,300 tonnes a year ago. The absence of summer showers has worsened the situation and rubber trees were damaged in many parts of Kerala. Extreme summer heat is expected to hit production in April and May.

Read lot more in Rubber4U – 15th April 2013 issue

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