Wednesday, August 13, 2014

Will there be a rebound shortly?


The domestic rubber prices are moving in line with the global prices, which have been sliding for some time due to oversupply of the commodity and lack of demand. The recent declaration by Union Commerce Minister - Nirmala Sitharaman that the import duty on natural rubber will not be raised further has only compounded grower’s woes. The drop in rubber prices seems to have affected the growers very badly. Even if the government look at the prospect of exporting rubber by providing subsidy to help the growers, then the question arise about quality and price.

The benchmark RSS4 grade rubber closed at `.131 a kg at Kottayam, while RSS3 grade closed at `.114.41 a kg at Bangkok and Malaysian SMR20 closed at `.102.03 a kg. On National Multi Commodity Exchange August 2014 futures were trading at `.128.25 a kg, September at `.128.78, October at `.128, November at `.128 and December at `.128.50 a kg, at 16.45 IST. On Tokyo Commodity Exchange, August 2014 futures series closed at ¥185.6 a kg, September at ¥188.5, October at ¥190, November at ¥193.3, December at ¥196.1 and the contract for delivery in January 2015 closed at ¥198.1 a kg.

For 2014-15 Rubber Forecast, Read 15th August 2014 issue

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