The recent uptrend in the natural rubber futures
can be attributed to the depreciation of the Japanese Yen, which began when the
Japanese government announced Quantitative Easing measures in April.
Global crude oil prices are trading lower on
the back of strong Dollar. Rubber fell after oil dropped, increasing speculation
that prices may weaken for synthetic rubber. Crude for June delivery traded at
$94.34 a barrel in electronic trading on the New York Mercantile Exchange.
Today, rubber for delivery in October touched
a low of ¥277.3 a kg and closed at ¥287.9 a kg on Tokyo Commodity Exchange. The
price of RSS3 grade closed at `.164.40 per kg at
Bangkok, while Malaysian SMR20 closed at `.134.79 a kg. Currently
there are no buyers as they anticipate a further downtrend to occur in prices. In
the domestic futures market, at 1.00 pm IST, the June 2013 series were trading in
negative at `.169.48 a kg, July at `.169.20, and August
at `.167.85 a kg, on the National Multi Commodity Exchange. At
Kottayam, RSS4 grade rubber may close at its previous level.
Read
lot more in Rubber4U – 1st June 2013 issue
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