Rubber4U

Rubber4U - 1st August 2015 issue

Trend may continue to next week

The key $50 price support for WTI oil has been broken (US$48.14 a barrel). Crude oil is struggling for any upside gain and experienced another depraved week as the inventory data reminding about the extra oil glut on the market. Chinese, world’s second-largest consumer of oil, disappointed markets with its manufacturing data. Will the current downturn be as severe as the one in 1986 and the current curve of oil prices is suggesting that there will be little recovery in the coming years.

Benchmark Tokyo rubber futures decline in two weeks, dragged lower by weak Shanghai futures following sluggish Chinese factory activity data. Tokyo Commodity Exchange futures, which set the tone for tyre rubber prices also came under pressure from oil prices closing at their lowest in months a day earlier. National Multi Commodity Exchange (NMCE) Rubber August contract traded with bearish sentiments on selling pressure from traders and this trend is likely to continue in next trading session as well.

The benchmark RSS4 grade rubber closed at `.124.50 a kg at Kottayam, while RSS3 grade closed at `.106.02 a kg at Bangkok and Malaysian SMR20 closed at `.90.79 a kg. On National Multi Commodity Exchange August 2015 futures closed at `.123.05 a kg, September at `.123.23 and October at `.123.05 a kg. On Tokyo Commodity Exchange, July 2015 futures series closed at ¥200 a kg, August at ¥198.5, September at ¥200.5, October at ¥203.3, November at ¥206.1 and the contract for delivery in December 2015 closed at ¥208.6 a kg.

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

Rubber stable as oil price dips

U.S oil prices dipped below $50 a barrel Monday for the first time since April on continued concerns that global crude oil supplies are overwhelming demand. US August crude, set to expire on Tuesday, fell 74 cents to settle at US$50.15 on Monday, having fallen to US$49.85, its first time below US$50 since April. Oil prices steadied on Tuesday and closed at $50.36 a barrel, helped by a dip in the dollar.

Versalis Pacific Trading (Shanghai), a 100% subsidiary of Versalis (Eni), a major producer in the polymers and elastomers industry, announced to have signed an Styrene Butadiene Rubber sales agreement with Reliance Industries Ltd. to commercialise the rubber produced by Reliance in the new plant.

The benchmark RSS4 grade rubber closed at `.125 a kg at Kottayam, while RSS3 grade closed at `.107.03 a kg at Bangkok and Malaysian SMR20 closed at `.93.07 a kg. On National Multi Commodity Exchange August 2015 futures closed at `.126.07 a kg, September at `.126.03 and October at `.125.02 a kg. On Tokyo Commodity Exchange, July 2015 futures series closed at ¥200.8 a kg, August at ¥204.1, September at ¥207, October at ¥209.8, November at ¥212.2 and the contract for delivery in December 2015 closed at ¥214.9 a kg. On Wednesday, most probably Tocom futures contract for delivery in December 2015 may trade in the range of ¥218 & ¥212 a kg.

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

Rubber4U

Rubber4U - 15th July 2015 issue

NR Production & consumption down in June

West Texas Intermediate for August delivery fell 4 cents to end at $52.74 a barrel on the New York Mercantile Exchange. Prices slid 7.4% this week. While Brent for August settlement rose 12 cents to $58.73 a barrel on the London based ICE Futures Europe exchange, down 2.6% this week. The International Energy Agency has forecast global oil demand growth to slow to 1.2 million barrels a day in 2016, compared to an average of 1.4 million barrels a day this year.

Benchmark TOCOM rubber futures extended losses during the week, as weaker oil prices and worries about slumping Shanghai futures prompted investors to unwind long positions.

In June 2015, natural rubber production in India fell by 20.63% to 50,000 tonnes from 63,000 tonnes, while consumption also dropped by 3.85% to 82,000 tonnes from 85,285 tonnes in July 2014. Natural rubber imports in July marginally increased by 0.69% to 33,606 tonnes from a year earlier.

The benchmark RSS4 grade rubber closed at `.125 a kg at Kottayam, while RSS3 grade closed at `.105.29 a kg at Bangkok and Malaysian SMR20 closed at `.92.15 a kg. On National Multi Commodity Exchange July 2015 futures closed at `.123.69 a kg, August at `.125.12 and September at `.124.98 a kg. Tokyo Commodity Exchange ended the week in negative, July 2015 futures series closed at ¥197 a kg, August at ¥199.6, September at ¥203.8, October at ¥206.2, November at ¥208.4 and the contract for delivery in December 2015 closed at ¥211 a kg.

To read Rubber4U – 15th July 2015 issue: http://rubber4u.com/Public/Abcd.pdf

Kerala govt. to implement minimum price scheme

The price stability fund announced by Kerala state in its budget for this year with the aim of giving relief to rubber farmers, has decided to implement a project that will utilize the price stability fund of `.300 crore and ensure that small farmers get a minimum price of `.150 per kg for rubber. The farmers who register in the project, will get the difference in the market price of rubber published every day. Subsidy will be given for a maximum of two hectares having rubber cultivation. A maximum of 1800 kg for a hectare will get the benefit. Subsidy would be provided on the basis of the report submitted by the field officer. The amount will be credited to the account of the farmers once in every two weeks.

The decision has been taken yesterday at a meeting attended by Chief Minister Oommen Chandy and Finance Minister K M Mani with a sub-committee set up for the purpose. While Agriculture organisations have announced their total support for the project.

Spot rubber continued to rule unchanged, though market seemed to be suffering from acute short supplies. The benchmark RSS4 grade rubber closed at `.129.50 a kg at Kottayam, while RSS3 grade closed at `.109.36 a kg at Bangkok and Malaysian SMR20 closed at `.94.99 a kg. On National Multi Commodity Exchange July 2015 futures closed at `.130.04 a kg, August at `.131.27 and September at `.130.65 a kg. Tokyo Commodity Exchange ended the week in negative, July 2015 futures series closed at ¥207.3 a kg, August at ¥209.6, September at ¥212.8 October at ¥214.9, November at ¥217.9 and the contract for delivery in December 2015 closed at ¥221.1 a kg. On Friday, most probably Tocom futures contract for delivery in November 2015 may trade in the range of ¥224 & ¥215 a kg.

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