Market improved on fresh buying

During April-November 2014 period, the cumulative value of exports increased 6.01% to `.1305792.96 crore, compared to `.1231786.75 crore during the same period of 2013. While cumulative value of imports for the period April-November 2014 was `.1915697.85 crore as against `.1801892.93 crore during the same period of 2013, registering a growth of 6.32%. The trade deficit for April-November 2014 was estimated at `.609904.89 crore.

The rupee on 28th August 2013 hit a lifetime low of 68.85 against the US dollar on strong demand for the American currency. For the FY 2014-15, the rupee dropped to its weakest level of 63.46 against dollar on 16th December 2014, as the dollar strengthened against other global currencies.

India's wholesale price inflation in November eased to 0%, compared to 1.77% in the previous month. The index for the rubber and plastic products group declined by 0.1% due to lower price of rubber products.

Kerala has sought `.1000 crore from Centre's Price Stabilisation Fund to provide relief to rubber growers suffering due to sharp fall in price of natural rubber. The Kerala Congress (M) delegation stressed that natural rubber imports into the country should be banned till the domestic price stabilised to a remunerative level. They pointed out that with Rubber Board statistics; it proves that there is a huge stock of rubber in the country, there is no justification for imports projected against the coming months.

Thailand rubber growers threatened to launch a massive protest if the government failed to increase prices to 80 baht per kg from about 40 baht currently within a month.

China’s import tariffs for rubber are currently set at 20% of the value and capped at 1,200 yuan a tonne. According to analysts, the ministry was expected to raise the cap to 1,600 yuan a tonne following recommendations by the local rubber association.

The market improved on fresh buying and short covering as sellers stayed back following the moderate gains. The benchmark RSS4 grade rubber closed at `.114.50 a kg at Kottayam, while RSS3 grade closed at `.102.53 a kg at Bangkok and Malaysian SMR20 closed at `.93.26 a kg. On National Multi Commodity Exchange December 2014 futures closed at `.113.71 a kg, January 2015 at `.114.69 and February at `.115.98 a kg. On Tokyo Commodity Exchange, December 2014 futures series closed at ¥181.5 a kg, January 2015 at ¥187.6, February at ¥193, March at ¥196.6, April at ¥200 and the contract for delivery in May 2015 closed at ¥201.8 a kg. On Wenesday, most probably Tocom futures contract for delivery in May 2015 may trade in positive range between ¥200 & ¥207 a kg.

To read Rubber4U – 15th December 2014 issue: http://rubber4u.com/Public/R4U12b.pdf