Tuesday, December 6, 2016

Expectation to boost sentiments


Oil prices on Tuesday ended lower for the first time since OPEC agreed on 30th November, to cut output. Brent futures settled at US$53.93 a barrel, while U.S. West Texas Intermediate (WTI) crude settled at US$50.93 per barrel.

On Wednesday, Reserve Bank of India’s Monetary Policy Committee (MPC) will place Fifth Bi-monthly Monetary Policy Statement for 2016-17 on its website at 2.30 pm. Market will be keen to understand the RBI’s roadmap for currency management. Market expects 0.25% cut in repo rate, while sharp 0.50% cut in repo rate is expected to boost sentiments. Rubber4U estimates there won’t be any cut in repo rate.

The benchmark RSS4 grade rubber closed at `.129 a kg at Kottayam, while RSS3 grade closed at `.142.06 a kg at Bangkok and Malaysian SMR20 closed at `.119.20 a kg. On National Multi Commodity Exchange the last traded price for December 2016 futures was `.131.36 a kg, January 2017 at `.133.61, February at `.136.08 and March at `.139.59 a kg. Tokyo Commodity Exchange December 2016 futures series closed at ¥229.3 a kg, January 2017 at ¥231.2, February at ¥231.4, March at ¥233.7, April at ¥237.5 and the contract for delivery in May 2017 closed at ¥240.4 a kg. On Wednesday, most probably Tocom futures contract for delivery in May 2017 may trade in the range of ¥238 & ¥243 a kg.

To read Rubber4U – 15th December 2016 issue: http://rubber4u.com/Public/Abcd.pdf
For 2016-17 Rubber Forecast: http://rubber4u.com/Public/RForecast.pdf

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