MARKET COMMENTARY
Sentiments were muddled in the local natural rubber market on Wednesday. In the physical market, quotes for RSS4 continued to edge higher while on NMCE, the grade took corrective dips after the recent up-moves. Limited supplies along with talks of rubber procurement continued to lend support though lingering worries over demand weighed on. In the international market, on Thursday, natural rubber is seen inching down, stretching previous session losses. TOCOM futures reversed initial gains and dipped as investors await fresh cues for directional moves.
MARKET NEWS
A meeting convened by the Kerala state Chief Minister to discuss on the implementation of the rubber procurement scheme last day turned out to be inconclusive as representatives of planters and rubber societies opposed the move to procure through dealers and demanded procurement through State Warehousing Corporation.
Kerala FM says the central government has assured that the state has not been excluded from the rubber subsidy scheme and also added that the state has sought Rs.500 crore for the rubber procurement scheme announced by the state budget.
The United States imposed duties on certain automobile and light truck tires imported from China after finding they were being dumped at below-market value and unfairly subsidized by Beijing.
Weekly inventory report from SHFE showed a rise of 1.4 per cent to 135539 tonnes last week.
Natural rubber production in Indian declined 9.4 per cent on year on year basis to 48000 tonnes in May according to the latest estimated from the Rubber Board. Imports dipped as well by 0.7 per cent to 34448 tonnes during the same period while consumption rose by 2.4 percent to 84000 tonnes.
China imports of natural and synthetic rubber tumbled 20 per cent in May on YoY basis to 280000 tonnes according to preliminary trade data released by the country’s General Administration of Customs.
According to a study conducted by Rubber Research Institute of India, occurrence of extreme temperature are becoming more frequent in the recent years in Kottayam, the major rubber growing area in Kerala and impact of changing climate in this region may seriously affect rubber cultivation. The study showed that the frequency of occurrence warming days has increased, which could adversely affect productivity.
According to a report appeared on Bangkok Post, Thailand Ministry of Natural Resources and Environment will begin operation June 1st to recover 640000ha of land which have been illegally converted into rubber plantation.
