Tuesday, June 24, 2014

As inventory falls, prices moved up


Oil prices pull back as traders pull back from their worst case scenarios and focus on the fact that oil exports from Iraq's southern ports are near record highs. Thailand military government plans to shore up falling rubber prices by increasing domestic rubber consumption instead of intervening in the market.

After a fraud investigation at the port, banks are more careful in granting financial support. It is estimated that stocks of natural, synthetic and compound rubber slipped to 327,900 tonnes from 362,200 tonnes in mid-May. About 14% of the stock holding is compound rubber made of natural and synthetic rubber used in tyres, which dealers say is mostly tied to financing deals. The inventory of natural rubber in Qingdao has fallen more than 3% to 261,000 tonnes since May. One of the reasons why stocks have fallen is because there has been less rubber for financing and the stock is expected to fall further. A drop in Qingdao stocks is usually positive for rubber prices as it implies stronger demand.

Today the benchmark RSS4 grade rubber closed at `.147.50 a kg at Kottayam, while RSS3 grade closed at `.130.14 a kg at Bangkok and Malaysian SMR20 closed at `.107.90 a kg. The last traded prices on National Multi Commodity Exchange for July 2014 were at `.148.15 a kg, August at `.148.01, September at `.147.20 and October at `.145.75 a kg. On Tokyo Commodity Exchange, June 2014 futures series closed at ¥206.1 a kg, July at ¥207.2, August at ¥210.1, September at ¥212.7, October at ¥214.9 and the contract for delivery in November 2014 closed at ¥217 a kg. The benchmark rubber contract for November delivery dropped ¥1.3 to settle at ¥217 a kg, as profit taking and a decline in crude oil market pressured the prices.

For latest rate of Currency Exchange: www.rubber4u.com/Statistic/Notices

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