Tocom hits 4 month low & import decreased by 6.51%

TOCOM rubber futures slid to a fresh 4 month low due to weaker oil prices and fears about slower demand in China. The Tokyo Commodity Exchange rubber contract for November delivery closed at ¥148 a kg was down by ¥2.8 per kg, after touching a low of ¥147.5 per kg, the lowest since 15th February 2016.

Oil prices have rallied by around 90% since hitting decade-lows earlier this year. Today, U.S oil futures prices fell below $50 a barre, dragged down by an appreciating U.S dollar sparked profit-taking and negative sentiment across financial markets.

The Indian natural rubber production for the month of April 2016 decreased by 2.5% to 39,000 tonnes compared to 40,000 tonnes during April 2015. While consumption during April 2016 increased by 5.18% to 85,000 tonnes, from 80,815 tonnes during April 2015. Natural rubber import decreased by 6.51% to 34,550 tonnes compared to 36,957 tonnes during April 2015. The natural rubber stock decreased by 11.98% to 213,000 tonnes compared to 242,000 tonnes during April 2015.

The benchmark RSS4 grade rubber closed at `.133.50 a kg at Kottayam, while RSS3 grade closed at `.100.63 a kg at Bangkok and Malaysian SMR20 closed at `.81.68 a kg. On National Multi Commodity Exchange June 2016, the futures closed at `.131.22 a kg, July at `.131.21, August at `.130.13 and September 2016 closed at `.129.61 a kg. Tokyo Commodity Exchange June 2016 futures series closed at ¥150.9 a kg, July at ¥150.9, August at ¥149.5, September at ¥148.6, October at ¥148.5 and the contract for delivery in November 2016 closed at ¥148 a kg.

To read Rubber4U – 15th June 2016 issue: http://rubber4u.com/Public/Abcd.pdf

For 2015-16 Rubber Forecast: http://rubber4u.com/Public/RForecast.pdf