Rubber still under pressure

As availability of natural rubber is high, buyers in the global market may not go for it. Rubber is in a bearish mode. The fall in crude oil prices is a major problem. It will make synthetic rubber cheaper. As a result, natural rubber prices will drop and growers will lose interest in nursing their plantations and tapping rubber.

Brent crude fell to a multi-year low after Saudi Arabia lowered the price of oil exported to the United States, while increasing the cost to Asia and Europe. Yesterday WTI closed at US$77.19 a barrel, while Brent crude closed at US$82.82 a barrel.

The European Commission reduced its estimates for euro-zone growth, projecting the 18 Nation region's gross domestic product would climb by 0.8% in 2014 and 1.1% next year, a decline from estimates of 1.2% and 1.7%.

The benchmark RSS4 grade rubber closed at `.120.50 a kg at Kottayam, while RSS3 grade closed at `.104.04 a kg at Bangkok and Malaysian SMR20 closed at `.94.21 a kg. On National Multi Commodity Exchange November 2014 futures closed at `.121.26 a kg, December at `.119.28, and January 2015 at `.119.71 a kg. Tokyo Commodity Exchange, November 2014 futures series closed at ¥190.1 a kg, December at ¥191.8, January 2015 at ¥193.2, February at ¥195.7, March at ¥198.6 and the contract for delivery in April 2015 closed at ¥199.8 a kg. Tommorrow most probably Tocom futures contract for delivery in April 2015 may touch a low of ¥193 a kg.

For 2014-15 Rubber Forecast, http://rubber4u.com/Public/RForecast.pdf