Rubber futures hit six-month low | DZHI - DZH International 

Rubber futures hit six-month low

  • i2Matrix
  • 16 September 2019
Kolkata: The auto industry crisis is having its impacts on the country's rubber sector. Consider this. The most active October contract of rubber on the Indian Commodity Exchange on last Friday hit a six-month low of Rs 12,965 per 100 kg, owing to sluggish demand from tyre makers in the country. It was more so because there were expectations from the traders of a further rise in imports of the commodity.  
The contract ended at Rs 13,005 per 100 kg, down 1.5 per cent from the previous close. However, early last week rubber contracts had risen marginally on the Indian Commodity Exchange as traders went in for bargain buying after the recent fall in prices.  
The October contract ended at Rs 13,355 per 100 kg, up 0.2 per cent from that of Monday, last week. The overall sentiment in the market remains bearish due to a rise in imports coupled with sluggish demand from tyre makers, traders said. 
According to the Directorate General of Commercial Intelligence and Statistics, imports of natural rubber in India rose 27.4 per cent, month-on-month to 50,940 tonnes in July. Significantly, expectations of higher production this season also weighed on contracts. 
"The prices of natural rubber in Kerala are likely to extend their fall in the coming days due to a rise in imports and continued sluggish demand from tyre makers," a senior analyst said. 
It is pertinent to mention here that the output of natural rubber in India in 2019-20 (Apr-Mar) is projected to be 7,50,000 tonnes, against 6,51,000 tonnes the previous year, according to Karvy Comtrade. Going by the Rubber Board statistics also, rubber production, which stood at 6.42 lakh tonnes in 2018-19, is seen higher by 15.7 per cent at 7.5 lakh tonnes during 2019-20. Meanwhile, coupled with this problem, low prices, rising input costs and oversupply of these commodities have pushed the rubber plantation sector into an overall crisis, sector analysts said. The rubber 
plantation sector therefore has been lobbying hard with the Centre to bring this commodity under the ambit of minimum support price to bail it out of the prevailing crisis. 
Interestingly, the growth in MSPs declared by the Centre for all the 22 crops has been higher than that of inflation during this period, except for tea, rubber and coffee. The problem cropped up as the price of the commodity has hardly risen over the past couple of decades, while the costs for producers have gone up multi-fold during the same period. 
-- The Asian Age 




For more Rubber and Crude Palm Oil reports that includes twice daily prices & other news reports, you can purchase the subscription here.


Benny Lee

Founder of i2Matrix. A market strategist, private trader and sought-after financial speaker and trainer in the Asian Region, Benny Lee has coached hundreds of professional and retails traders and investors in Malaysia, Singapore, Hong Kong, Thailand, Vietnam, Pakistan for more than 13 years. His passion in trading and chart analysis leads him to develop trading strategies that have helped him and many others to trade and invest successfully in the financial markets.

Benny Lee is recognized by the Malaysian and Singapore Stock Exchange as a Credible Trainer. He has also trained professionals in Malaysia under Securities Commission’s Continuous Professional Education (CPE) Program. He is also a market strategist Jupiter Securities Sdn Bhd, a Malaysian stock-broking firm.

Benny has been invited to share his expert opinion in major commodities and financial events in Malaysia, Singapore, India, Indonesia, Vietnam, Thailand, and Romania. His analysis on the financial markets can also be found on a regular basis in leading financial magazines like Smart Investor, Shares Investment Magazine and The Edge Daily in Malaysia, and Pulses Magazine in Singapore. He has also appeared on TV Financial Programs such as Capital TV (Malaysia), Channel News Asia (Singapore) and Sunbiz (Pakistan) to share his views about the markets and technical analysis.

Today, you can find his market comments regularly on The Financial Edge Daily (Wednesdays), Interview on BFM89.9 ( business radio station on Mondays at 9.00 am, The Busy Weekly, a Chinese business weekly and Palm Oil Fortune (A monthly magazine by the Malaysian Palm Oil Council, MPOC). His views are also regularly quoted on Bloomberg.

For more information, you can visit them at