Friday, May 17, 2013

Rubber once again to make uptrend


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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