Tokyo rubber closes lower

Tokyo rubber futures closed down on Monday, snapping an eight-day bull run as funds locked in profits after a rise of more than 1 per cent in early trade to a one-month high on strong oil prices. ''Follow-through buying emerged in early trade, but profit-taking pushed down prices from the high after sharp gains in the last week,'' said Mr Shuji Sugata, a manager at Mitsubishi Corp Futures and Securities Ltd. The key Tokyo Commodity Exchange rubber contract for February delivery finished at ¥318.2 a kg, down ¥2.5 or 0.8 per cent. The February contract rose as high as ¥324.9 per kg - the highest for a benchmark contract since Aug. 1.

Rubber Sees Steady Trend

The domestic rubber prices were firm on Sept 11. Traders remained to sideline the market and the inflow of the raw material hit the bottom lines. RSS 4 ended flat at Rs 141 a kg as on Sept 10. According to observers any visible change is hoped only after the Onam holidays. Meanwhile, the trend-setting Japanese rubber futures ended in red reporting slightly losses as it recovered partially on late trading followed by short covering at lower levels. Its spot closed at Rs 133.77 (133.18) a kg at Bangkok. Spot prices were (Rs/kg): RSS-4: 141 (141); RSS-5: 138 (138); ungraded: 136 (136); ISNR 20: 130 (130) and latex 60 per cent: 81 (81)

Coonoor Tea Sales Turnover Increases Rs 97cr

Producers who sold their teas via the 35 sales held in the eight months of 2008 at the auctions of Coonoor Tea Trade Association (CTTA) have earned Rs 97.28 crore more than in the same period of 2007. In all, 3.43 crore kgs were sold against 2.34 crore kgs. On an average, every kg got Rs 14 more to increase to Rs 59.24. This marked an increase of Rs 97.28 crore or 92 per cent. Earnings rose for both the orthodox and CTC teas. Of the 3.43 crore kgs, CTC teas calculated for 3.20 crore kgs. Prices increased to an average of Rs 59.03 a kg from Rs 44.24. The volume of orthodox teas totalled 2.27 million kgs against 1.98 million kgs last year

Pepper Futures Down On Fall In Other Origin Rates

Pepper futures market continued its downward trend on Sept 10 also on pessimistic activities and on reports of prices easing in other origins-Vietnam and Brazil. October and November declined by Rs 139 and Rs 155 a quintal to Rs 12,775 and Rs 13,001 respectively on NCDEX. All the three contracts declined to below the spot price of Rs 13,400 a quintal for MG 1. The fall in other contracts was from Rs 42 to Rs 337 a quintal.

Banks are closed for two days on Sept 11 and Sept 12 on account of Onam and it is also affecting the trade. Total volume increased by 3,585 tonnes to 11,354 tonnes, while total open interest dropped by 410 tonnes to 19,128 tonnes. Open interest for September declined by 868 tonnes, while October and November moved up by 252 tonnes and 229 tonnes. Spot rates ruled firm at prices of Rs 12,800 (un-garbled) and Rs 13,400 (MG 1) a quintal

Rubber Rates Unaltered

Rubber prices ended unchanged on Sept 10. RSS 4 closed flat at Rs 141 a kg amidst thin volumes. About 50,000 tonnes of rubber now available with the growers in the State are under various stages of processing. Since the rain continues the sheets cannot be sun dried. Spot rates were (Rs/kg): RSS-4: 141 (141); RSS-5: 138 (138); ungraded: 136 (136); ISNR 20: 130 (130) and latex 60 per cent: 81 (81)

Rubber Sees Steady Trend

Physical rubber prices ended almost firm on Sept 9. Supply concerns continued to disrupt the trading activities in the main marketing centres but major grades remained flat on strong purchasers resistance. Sheet rubber RSS 4 closed unchanged at Rs 141 a kg as on Sept 8. On the domestic front, the trend was mixed as ungraded rubber and latex improved by 50 paise on scattered transactions. RSS 3 (spot) increased to Rs 133.18 (132.15) a kg at Bangkok. Spot prices were (Rs/kg): RSS-4: 141 (141); RSS-5: 138 (138); ungraded: 136 (135.50); ISNR 20: 130 (130) and Latex 60 per cent: 81 ( 80.50)

Rubber Price Increases

Physical rubber prices increased on Sept 6. Supply worries remained to put pressure on the purchasers while RSS 4 firmed up to Rs 140.50 from Rs 140 a kg on Sept 5. In the domestic market, sheet rubber RSS 4 lost 50 paise per kg during the week. The trading volumes were low. Spot rates were (Rs/kg): RSS-4: 140.50 (140); RSS-5: 136.50 (136); ungraded: 134 (133); ISNR 20: 130 (130) and latex 60 per cent: 80.50 (80.50)

Pepper Futures Market Decline

Bear operators downed the pepper futures market on Sept 5. September contract on NCDEX declined by Rs 356 a quintal to Rs 13,585, which is Rs 415 below the spot price for MG 1 of Rs 14,000 a quintal. Even October contract declined below the spot price by Rs 336 a quintal to Rs 13,880. November contact fell by Rs 314 to Rs 14,130. On NMCE, September contract fell by Rs 421 a quintal to Rs 13,617. The decline in other contracts was from Rs 308 to Rs 365 a quintal. Total turnover on NCDEX fell by 4,876 tonnes to 7,965 tonnes, while total open interest increased by 248 tonnes to 20,319 tonnes.

Rubber Sees Steady Trend

Spot rubber prices remained to rule unchanged on Sept 5. Major manufacturers were purchasers on the grade up to the quoted levels and sheet rubber RSS 4 ended flat at Rs 140 a kg as on Sept 4. The grade (spot) increased slightly to Rs 132.97 from Rs.132.32 a kg at Bangkok. Spot prices were (Rs/kg): RSS-4: 140 (140); RSS-5: 136 (136); ungraded: 133 (133); ISNR 20: 130 (130) and latex 60 per cent: 80.50 (80.50).

Tea Rates Increase In World Sales

Teas sold via all auction centres across the globe, except Malawi's Limbe, have got higher prices in the first half of calendar 2008 over the corresponding period of 2007, an analysis of Market Reports and information available with Tea Board reveals. Indonesian teas at Jakarta sales got the highest increase of 44.12 per cent to average $1.47 a kg. Kenyan teas at Mombassa auctions registered the next highest increase of 35.58 per cent, to rule at $2.21 a k g. Sri Lankan teas at Colombo auctions increased 32.46 per cent to average $3.02. Bangladesh teas at Chittagong auctions got 28.70 per cent more to rule $1.48. Indian teas at the eight auction centres registered an increase of 19.21 per cent to rule $1.80.

Spot rubber rules unchanged

Spot rubber prices continued to rule unchanged on Friday. The transactions were in a low key as there was no improvement in arrivals as yet. Major manufacturers were buyers on the grade up to the quoted levels and sheet rubber RSS 4 finished flat at Rs 140 a kg as on Thursday.

The trading community seemed to be bit disappointed since there were no signs of improvement in the domestic supply as expected before Onam. With only a few more days for the most celebrated festival of the State, the decline in business volumes is a matter of concern for the dealers as a whole, according to a spokesperson. It is really surprising to see that even the village markets are suffering from acute shortage of the raw material, he added.

Futures decline

In international futures, RSS 3 declined at its September contract to ¥333.6 (Rs 140.17) from ¥340.7, October to ¥323.6 (330.4), November to ¥320 (327), December to ¥313 (320.3), January to ¥310 (317.1) and February to ¥308.6 (316.5) a kg at TOCOM. The grade (spot) improved marginally to Rs 132.97 from Rs.132.32 a kg at Bangkok. Spot prices were (Rs/kg): RSS-4: 140 (140); RSS-5: 136 (136); ungraded: 133 (133); ISNR 20: 130 (130) and latex 60 per cent: 80.50 (80.50).

Tokyo rubber gains 2.7%

Tokyo rubber futures jumped 2.7 per cent to end at the day's high on Thursday in a rally towards the close, aided by gains in other commodities futures as dealers rushed to unwind short positions. The key TOCOM rubber contract for February delivery closed at ¥316.5 per kg, up ¥8.3 from Wednesday, after reversing an early fall to a one-week low of ¥306.4. On Monday the contract hit a one-month high of ¥324.9.

Falling rubber inventories in Japan mean that the TOCOM market remains in backwardation. Nearby September closed Thursday up 4.7 yen at ¥340.7. In the physical sector, steady buying from Japan's Bridgestone Corp was recently detected, dealers said.

Spot rubber rules steady

Rubber market ruled steady on Thursday. The trading activities were mostly neutral lacking active participants either side to set a specific trend. RSS 4 closed unchanged at Rs 140 a kg consecutively for the third day on buyer resistance. The transactions were low. Major manufacturers were buyers on sheet rubber up to Rs 140 a kg but they were unwilling to enhance their quotes further though the leading global indices finished higher on late trading.

According to observers, the domestic traders were expecting an improvement in arrivals followed by favourable weather conditions. Most of them seemed to be reluctant to enhance their commitments above the prevailing levels which in fact is very close to the all time high of Indian rubber.

Futures improve

RSS 3 improved further at its September contract to ¥340.7 (Rs 139.29) from ¥336, October to ¥330.4 (324.5), November to ¥327 (319.5), December to ¥320.3 (313), January to ¥317.1 (309.7) and February to ¥316.5 (308.2) a kg at TOCOM. The grade's spot closed firm at Rs 132.32 (132.17) a kg at Bangkok. Spot prices were (Rs/kg): RSS-4: 140 (140); RSS-5: 136 (136); ungraded: 133 (133); ISNR 20: 130 (130) and latex 60 per cent: 80.50 (80.50).

Tokyo rubber falls 3.5%

Tokyo rubber futures fell 3.5 per cent on Tuesday as a steep fall in oil prices encouraged investors to flee from commodities, including rubber, dragging down the benchmark contract to its lowest level in a week. The key Tokyo Commodity Exchange rubber contract for February delivery closed at ¥307.1 per kg, down ¥11.1 from Monday's close. It earlier hit an intraday low of ¥307 {ndash} the lowest since Aug. 25.

The key TOCOM rubber contract ended an eight-day winning streak on Monday, when it succumbed to pressure after hitting a one-month high of ¥324.9. "Oil prices are the key factor triggering selling in rubber. The fall is very quick after rising near ¥325 on Monday,'' said Mr Takashi Ogura, manager at Kanetsu Asset Management. Asian physical rubber prices edged down following sharp falls in futures prices, but physical prices limited their falls due to rain in Thailand and Malaysia in recent days.

Move to resume rubber futures disappoints traders

The Forward Market Commission's reported move to resume futures trading in rubber after its unilateral suspension has left the trade circles worried as they feel resumption without imposing any restriction to control excessive volatility by speculators will harm the sector.

"The growers were getting average annual prices much below international prices during the tenure of futures trade. Prior to the introduction of futures and after the suspension of futures, the growers were getting comparatively higher prices. The FMC's contention is that if the industry does not need futures, then it should be advantageous to growers," said Mr N. Radhakrishnan, President, Cochin Rubber Merchants Association. The industry consumed over 39 lakh tonnes of rubber in the past five years, whereas the physical delivery effected in futures was to the tune of 75,000 tones during the period. Margin of profit

"A vast majority of rubber dealers are also rubber growers. For the past six decades, they were ensuring timely supplies to the consuming industries keeping a meagre margin for themselves. In the process, the growers have been getting over 97 per cent of the terminal market prices for sheet rubber at their farm gate. The growers in other countries fetched a farm gate price which was 75-85 per cent of the terminal market price," he added. The margin of profit of each spot dealer ranges from 0.5-1 per cent. In this scenario it is not possible for a spot trader to co-exist with the speculators.

Spot rubber turns weak

Physical rubber prices turned weak on Tuesday. RSS 4 moved down to Rs 140 from Rs 141 a kg on buyer resistance. The volumes continued to be low as there were no quantity sellers or buyers in the main marketing centres. According to market circles, major manufacturers were active on sheet rubber at the quoted levels. Meanwhile, sharp declines in Japanese rubber futures followed by heavy long liquidation kept the domestic prices under pressure during the session.

Futures slip

Most of the players seemed to be expecting an improvement in arrivals towards mid September. RSS 3 declined sharply at its September contract to ¥334.8 (Rs 136.71) from ¥343.5, October to ¥323.8 (334.7), November to ¥318.1 (330.1), December to ¥312.4 (322.9), January to ¥307.5 (319) and February to ¥307.1 (318.2) a kg at TOCOM. RSS 3 spot improved further to Rs 132.79 (131.81) a kg at Bangkok. Spot prices were (Rs/kg): RSS-4: 140 (141); RSS-5: 136.50 (138); ungraded: 132.50 (133); ISNR 20: 130 (132) and latex 60 per cent: 80.50 (81.50).