Monday, March 28, 2016

Encouraging factors push up prices


The natural rubber futures are gaining here on price-supporting measures by producing countries, with the August contract for a benchmark product trading at a seven-month high on the Tokyo Commodity Exchange.

The most actively traded September contract closed at ¥180.5 per kg, higher than the recent low in early February. Prices are also climbing because many producing countries are entering the dry season; output is expected to drop about 20% till May. The price of crude oil, which is used to make synthetic rubber, is on the rise. Thailand, Indonesia and Malaysia plans to cut total exports by 615,000 tonnes over the six months starting in March will also help in pushing up prices. Recently, Indonesian government announced that it will buy 500,000 tonnes of natural rubber.

The benchmark RSS4 grade rubber closed at `.114 a kg at Kottayam, while RSS3 grade closed at `.101 a kg at Bangkok and Malaysian SMR20 closed at `.89.13 a kg. On National Multi Commodity Exchange April 2016, the futures closed at `.117.66 a kg, May at `.119.01 and June 2016 closed at `.120.39 a kg. Tokyo Commodity Exchange April 2016 futures series closed at ¥170.7 a kg, May 2016 at ¥172.1, June at ¥174.8, July at ¥177.5, August at ¥179.3 and the contract for delivery in September 2016 closed at ¥180.5 a kg. On Tuesay, most probably Tocom futures contract for delivery in September 2016 may trade in the range of ¥182 & ¥176 a kg.

To read Rubber4U – 1st April 2016 issue: http://rubber4u.com/Public/Abcd.pdf
For 2015-16 Rubber Forecast: http://rubber4u.com/Public/RForecast.pdf

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