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Firm moves were witnessed in the natural rubber market in the week gone by. Concerns over output due to unfavourable weather in Thailand and China lend support. However, linger worries over global economic growth momentum weighed on, keeping gains under check.

*Extreme weather in China is threatening to disrupt more commodities, even niche ones like rubber and peanut crops, which may push the world’s biggest consumer to import more. Less than 20 percent of rubber plantations in the area were able to start tapping on time, but they had to stop because of drought that has persisted for more than a month, according to the Yunnan Natural Rubber Industry Group, a state-owned producer and processor.

*In view of the recent developments and release of the latest outlook by International Monetary Fund (IMF), ANRPC has updated its outlook of global natural rubber (NR) market for this year? global production of NR is now projected to grow by 2.7% (0.1% higher than previously reported) reaching 14.916 million tons, while a contraction in global demand for NR by 0.4% going down to 14.912 million tons is expected. During March, global NR production fell 26.1% to 967,000 tons compared to last month, while global demand for NR is estimated to grow by 7.9% to 1.306 million tons during the same reference period. In spite of such positive market fundamentals in NR market, physical and futures market of NR were volatile attributed to a series of events in the international arena, such as the regional banking crisis in US and Swiss Bank, Credit Suisse, geopolitical tensions, bearish outlook in crude oil, continuous interest rate hike to beat inflation, and the strength of exporting currencies.

*Malaysia’s natural rubber (NR) production decreased by 7.6% to 27,209 tonnes in February 2023 from 29,451 tonnes in January 2023, said the statistics department (DoSM). In its monthly rubber statistics report released today, chief statistician Uzir Mahidin said NR production fell by 2.7% year-on-year compared with 27,950 tonnes in February last year. The local production of NR in February was mainly contributed by the smallholder sector at 87.3% as compared to 12.7% by the estate sector. Meanwhile, exports of Malaysia’s NR amounted to 48,393 tonnes in February, an increase of 18.4% against 40,867 tonnes in the preceding month. China remained the main destination for NR exports which accounted for 56.9% of total exports in February this year, followed by Germany (7.3%), Turkey (3.6%), the United States (2.1%), and Egypt (1.5%). *Mr. M. Vasanthagesan IRS took over charge as the Executive Director of the Rubber Board of India, on 17 April 2023. He was working as Additional Commissioner in Customs (Preventive), Kochi.

*The government of Kerala has allocated Rs 23.45 crores towards the disbursal of dues from the last fiscal for the price stabilisation fund for rubber farmers. The difference between the price fixed by the government at Rs 170 per kg of produce and the market price will be credited to the bank accounts of around 1.47 lakh rubber farmers. The state government has earmarked Rs 600 crore in the 2023-24 budget owards the Rubber Price Stabilisation Fund (RPSF), an increase of Rs 100 crore from the previous budget. *CRISP (Comprehensive Rubber Information System Platform) has been developed by the Rubber Research Institute of India (RRII) in collaboration with the Digital University of Kerala. The app was launched by ZP Patel, Vice Chancellor, Navsari Agricultural University, Gujarat. With the help of CRISP, the farmers will now be able to receive recommendations of RRII on production and productivity enhancement, reduction of cultivation cost, maintenance of soil fertility, disease control measures, etc. Currently, these facilities are reaching the farmers through traditional extension methods. Many of these recommendations are location specific and can be linked to geo-information systems and delivered directly to the farmers

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JAPAN OSAKA RUBBER OCT23 FUT

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