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.
What our readers say: http://rubber4u.com/Public/Views.pdf
No comments:
Post a Comment