This entry was posted on Saturday, October 31st, 2009 at 9:14 am and is filed under Rubber News. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.
After a lackluster trading session NMCE rubber futures end with a positive sign. However most of the Asian rubber markets show some weakness on Thursday as Japans auto output posted a decline of 21.6 percent on year in September, making the 12th straight month fall. In Tokyo commodity exchange April contract settles 3.6 yen lower at 226.1 yen per kg.
According to latest report from International Rubber Study Group, Global rubber supply may jump 30 percent by 2015 and may increase by 50 percent by 2020, due to dramatic increase in total new planting. In 2008 total new planting is estimated to have reached around six times the level of 2000.
According to Rubber Board’s revised estimate, consumption may move up 6.85% on year from 872,000 tn in 2008-09 (Apr-Mar), while overall output is likely to slip by 3% from 865,000 tonne. According to reports from General Global natural rubber output in the January- August period is expected to fall 8.5% from a year ago to 3.66 million metric tons, the Association of Natural Rubber Producing Countries said Friday. However, the estimate doesn’t include production in Indonesia, which fell an estimated 6.3% during the January-July period to 1.59 million tons. In Indonesia, the government collates data with a lag.
According to the latest report from Association of Natural Rubber Producing Countries, the rate of decline in natural rubber supply was accelerating worldwide due to lower output in all major growing regions. Natural rubber output in the January-August period in Thailand, the world’s largest producer, was 1.9 million tons, 8.3% lower from a year ago. In Malaysia, production in the January-September period was 24% lower, while in India it was down 11%. The only major country which has reported gains in output is China, where output grew an estimated 28% in the first nine months of 2009.
Lower output and weak demand during the first half of 2009 also affected natural rubber exports. Thailand’s exports in the January-August period were 8.7% lower, while Malaysia’s January-September exports were down 34%. India’s exports have been negligible while imports have been rising due to a rise in local demand from tire makers. India imported 20,000 tons of natural rubber in September, up from 13,000 tons a year earlier.
NMCE rubber moved in the range of Rs11399-11260 last traded at Rs11370 (11329) Open interest increased by 37 to 1607. Rubber stocks at NMCE accredited warehouses increased by 69 to 516 Mt.
INTRADAY OUTLOOK
NMCE Rubber December futures support lies at 11287 and 11204. Resistance is at 11426 and 11482.
Source: commodityonline.com