Rubber Steady Trend - Aug 30 , 2008

Kottayam; Rubber prices turned firm on Aug 29. RSS 4 closed firm at Rs 142 a kg though the international indices ened in green. The fresh quote from the tyre sector was slightly lower at Rs 141 a kg for sheet rubber. It is hoped that the present situation would change once the production picks ups shortly. Spot prices were (Rs/kg): RSS-4: 142 (142); RSS-5: 139 (139); ungraded: 134 (134); ISNR 20: 132.50 (132.50) and latex 60 per cent: 81.50 (81.50).

Pepper Futures Fell -Aug 30 , 2008

Kochi: Pepper futures market declined on Aug 29 on pessimistic operations and the September contract declined below the spot prices. September contract fell by Rs 115 a quintal to close at Rs 13,943, much below the spot price of Rs 14,200 of MG 1. The decline in other contracts was from Rs 38 to Rs 117 a quintal on NCDEX. Total turnover increased by 1,920 tonnes to 5,903 tonnes while total open interest fell by 232 tonnes to 19,874 tonnes. September declined by 444 tonnes while October and November moved up by 147 tonnes and 55 tonnes respectively.

Exporters were also jumping away from taking delivery because of fear of the quality of the material. In fact, at a meeting organized by the FMC in Bangalore early this week, dealers and farmers of sugar, pepper and rubber and some chamber of commerce people asked the Regulator to introduce some mechanism to arrest this manipulation of the market apart from putting in some fool-proof mechanism to ensure quality of the material delivered. Purchasers in the overseas markets are also loosing confidence in the futures market.

Tea Exports To Iraq - Aug 30 , 2008

Coimbatore: After a brief lull, tea exports to Iraq are reported to have restarted this week. The volumes were not substantial, but were hoped to increase in due course. A glance at the volumes traded in the Coimbatore auction centre show that both the quantities traded and the rates have moved up compared to the corresponding period of the previous year. The volumes traded for the six months ended June 2008 increased to 14.1 million kg against 11.38 million kg last year. Teas worth around Rs 25-30 crore was still not cleared at the other end. Most of the importing countries are purchasing multi-origin teas and blending them

FMC Optimistic On Commodities Futures Ban Lifting - August 29 , 2008

The Forward Markets Commission (FMC) is expecting the Central Government to do away with the ban on futures trading on four commodities next month. In May, the government had suspended futures trading in soyoil, potato, rubber and chickpea for four months, to control the soaring inflation. FMC had convened a meeting of representatives of trade and manufacturers associations, chambers of commerce and industry, marketing federations and co-operatives, in Bangalore on August 28.

Pepper Futures Market Saw High Volatility - Aug 29 , 2008

Kochi: Pepper futures market saw high volatility on Aug 28 and moved slightly up. September contract increased by Rs 24 a quintal to Rs 14,055 while October and November increased by Rs 25 and Rs 21 respectively to Rs 14,355 and Rs 14,600 a quintal. Total turnover fell by 2,740 tonnes to 3,983 tonnes, while total open interest fell by 4 tonne to 20,106 tonned.

In the world market the availability is likely to be limited in the coming months and till the next Vietnam crop arrives in the market in Mar/Apr 2009. The Brazilian crop is likely to be around 35,000 tonnes. Indian parity is $3,475 tonne (c&f) for Europe and $3,525 a tonne (c&f) for the US. Overseas purchasers were reported to have been inactive probably because of weaker advices from Brazil and Ecuador. E Asta was cited 3,250 a tonne c&f US. Brazil Asta was reportedly traded at $2,900 (f.o.b.). Vietnam has quoted 500 GL and 550 GL at $2,850 and $3,025 a tonne respectively (fob) HCMC. Vietnam white pepper was offered at $4,415 a tonne (f.o.b.).

Rubber Prices Witness A New Record - Aug 29 , 2008

On August 28, due to speculative holding back of stocks by sellers and firm overseas cues from key Asian markets like Tokyo and Bangkok, the spot rubber prices went up. And the benchmark RSS-4 grade has touched a new record high of Rs 142 a kg.

The previous high for RSS-4 grade was Rs 141.50 on August 1. Although the board had placed the price of the commodity at Rs 141.50 for that day, most traders said they sold the commodity at Rs 142 then. Overall supply of the commodity is weak due to growers holding back stocks as well as production in August being disrupted by rains in growing areas of Kerala.

Guar Seed Production Likely To Reach 1.01 Crore Bags - 28 Aug 08

Chennai: With the growing areas in Rajasthan getting good rainfall, guar seed output in the country is likely to reach 1.01 crore bags (of 100 kg). Rains were good in the whole Rajasthan belt. Output could be at least 70 lakh bags in Rajasthan. Haryana is likely to witnesses a output of 30 lakh bags, while the rest is hoped to come from Madhya Pradesh, Gujarat and Uttar Pradesh. Guar or cluster beans is a legume crop that grows best in the semi-arid regions in the country. India is the major producer of guar seed and gum, making up 80-85 per cent of the total global supply.

If the output is good, then the market could decline from the current level. Guar prices could fell by Rs 100 a quintal. Currently, guar seed is quoting at Rs 1,748.15 a quintal in Jodhpur. In the futures market, guar seed September contract is ruling at Rs 1,756 a quintal, while October contract at Rs 1,801. The prices are lower than it were during mid-July when guar seed for September contract was quoted at Rs 1,991 a quintal and spot prices ruled at Rs 1,876 in Jodhpur.

Pepper Futures End Marginally Higher - 28 Aug 08

Kochi: Pepper futures market after saw high volatility on Aug 27 closed marginally higher. On NCDEX, September contract increased by Rs 40 a quintal to close at Rs 14,016, far below the MG 1 spot price of Rs 14,200 a quintal. The increase in other contracts except February was from Rs 24 to Rs 58 a quintal. Total turn over fell by 947 tonnes to 6,733 tonnes while total open interest fall by 19 tonnes to 20,110 tonnes. September and November open interest declined by 411 tonnes and 13 tonnes respectively while October moved up by 351 tonnes. Indonesia was looking for their new crop to arrive. Brazil was lower because of a strong dollar and offering B Asta at $2,975 a tonne (fob). B1 was cited at $2,850 at tonne (fob) and B2 at $2,750 a tonne (fob). Vietnam cited FAQ 500 GL at $2,750 a tonne (fob) and 550 GL at $2,900 a tonne (fob). L Asta was reportedly quoted at $3,500-3,600 a tonne in the US.

Rubber Price Increases - 28 Aug 08

Kottayam: Spot rubber price improved on Aug 27. RSS 4 crossed higher the magical level of Rs 140 to settle firm at Rs 141 (Rs 139) a kg on better demand. Supply worries dominated the market mood and covering groups continued extremely aggressive on the grade during the session. The transactions were low. Spot prices were (Rs/kg): RSS-4: 141 (139); RSS-5: 137 (135); ungraded: 132 (130); ISNR 20: 134 (131) and latex 60 per cent: 81.50 (81).

Rubber Sees Steady Trend - August 23 , 2008

Kottayam: Spot rubber remained to rule firm on Aug 22. RSS 4 ended unaltered at Rs 137 a kg as on Aug 21. The tyre sector kept their quotes even below at Rs 136.50 a kg during the session possibly to avoid another bull run amidst short supply. The grade (spot) increased further to Rs 124.11 (123.21) a kg at Bangkok. Spot prices were (Rs/kg): RSS-4: 137 (137); RSS-5: 134.50 (134.50); ungraded: 128 (128); ISNR 20: 131.50 (131.50) and latex 60 per cent: 81 (81).