Tuesday, December 9, 2014

Rubber slips further down as oil prices falls


The crude oil price has fallen to its weakest point since October 2009 at US$62.87 per barrel, which has dropped slightly following the publication of China's monthly trade data, which came in well below the expectations. China's State Reserves Bureau is to buy 128,500 tonnes of rubber for its stockpiles, but market participants doubt the move would offer support to prices.

Rubber farmers are threatening to march on Bangkok next year if their demands for higher prices and an industry rescue plan are not met. The Thai government has announced four more short-term measures to arrest plummeting rubber prices ahead of a planned protest by farmers. While Tokyo Commodity Exchange rubber contract for May delivery had fallen to ¥193.6 per kg. It earlier in the day it touched a low of ¥192.7 a kg.

The benchmark RSS4 grade rubber closed at `.115 a kg at Kottayam, while RSS3 grade closed at `.95.28 a kg at Bangkok and Malaysian SMR20 closed at `.88.80 a kg. On National Multi Commodity Exchange December 2014 futures closed at `.113.32 a kg, January 2015 at `.113.36 and February at `.114.24 a kg. On Tokyo Commodity Exchange, December 2014 futures series closed at ¥180.7 a kg, January 2015 at ¥182.6, February at ¥186.1, March at ¥190, April at ¥192.2 and the contract for delivery in May 2015 closed at ¥193.6 a kg.

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

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