Friday, June 26, 2015

Rubber price expected to follow oil trend


International Crude Oil prices fell from US$115 a barrel last year to as low as US$45 a barrel in January this year, leading to a budget crunch in many Gulf countries. While Saudi Arabia and the UAE are seeing strong growth despite the price dives in Crude Oil. The International crude oil price of Indian Basket declined 1.17% to US$60.86 a barrel on 22nd June as against US$61.58 a barrel on 19th June. On Friday Brent crude for August was down 50 cents at $62.70 a barrel by 1345 GMT after ending the previous session down 29 cents. US crude was down 70 cents at $59.00 a barrel after finishing Thursday down 57 cents. There's a lot of crude oil that's trying to find a home, which limits the potential for a crude oil rally.

In a press note issued by the Rubber Board said the scheme for financial assistance for rubber planting/replanting is available for all regions, including traditional and non-traditional rubber growing areas. Considering the resources available in the first quarter of the year, the Board has invited applications from non-traditional and North-East regions.

Illegal money lending has flourished in Kerala because banking sector’s are reluctance to lend to small borrowers. Also, the guarantee requirement, extensive paperwork and delay make bank credit often inaccessible to the small borrowers. The Kerala government has revived Operation Kubera, the drive against illegal moneylenders like illegal lenders, kuries, chit funds, informal financial enterprises and unauthorised non-banking financial institutions.

The benchmark RSS4 grade rubber closed at `.130.50 a kg at Kottayam, while RSS3 grade closed at `.114.09 a kg at Bangkok and Malaysian SMR20 closed at `.98.60 a kg. On National Multi Commodity Exchange July 2015 futures closed at `.131.61 a kg, August at `.132.63 and September at `.133.53 a kg. Tokyo Commodity Exchange ended the week in negative, July 2015 futures series closed at ¥213.6 a kg, August at ¥215.7, September at ¥218 October at ¥220, November at ¥223.4 and the contract for delivery in December 2015 closed at ¥225.8 a kg.

To read Rubber4U – 1st July 2015 issue: http://rubber4u.com/Public/Abcd.pdf

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