Market still in bear mood

Kerala government began its natural rubber procurement plan at `.2 more than the market price to raise the price to `.171 a kg. As international prices are at its low and local supply so tight that imports are likely to continue. The excise duty reduction announced in the interim budget has failed to trigger a boom in vehicle sales. Under this circumstance it will be difficult to increase the natural rubber prices to `.171 per kg in the short term.

Industry feels that 2.72 lakh tonnes of natural rubber stock projected by the Rubber Board at the end of January 2014 is an overestimated. According to the industry, it should be 30,000 to 40,000 tonnes lower.

On Saturday, RSS4 grade at Kottayam closed at `.147 a kg, while National Multi Commodity Exchange, March 2014 futures closed at `.144.65 a kg, April at `.149.66, May at `.152.67 and June at `.154.70 a kg. On Friday, the benchmark RSS3 grade closed at `.137.74 a kg at Bangkok, while Malaysian SMR20 closed at `.119.83 a kg. On Friday, Futures on the Tokyo Commodity Exchange, March 2014 futures series closed at ¥236 a kg, April at ¥236, May at ¥237.7, June at ¥234.3, July at ¥231.9, and the contract for delivery in August 2014 closed at ¥231.2 a kg. On Monday the most active contract for August may touch ¥222 a kg.

What our readers say: http://rubber4u.com/Public/Views.pdf

Read lot more in Rubber4U – 15th March 2014 issue