RUBBER NEWS -
- Natural rubber prices hit record high -
George Joseph / Kochi February 23, 2010, 0:48 IST
Natural rubber (NR) prices again touched an all-time high today. The benchmark grade RSS-4 was today quoted at Rs 142 a kg in Kochi and Kottayam markets. The prices had last touched this level on August 29, 2008.
During the last one year, RSS-4 prices have increased 100 per cent. The strongly bullish market is now poised for further rise in prices and the RSS-4 may breach the Rs 150-a-kg mark soon.
The local market is moving in tandem with global markets especially that of Singapore (SICOM) and Bangkok counters. SICOM today quoted RSS-4 at Rs 148.86 a kg, which is also a record level.
Majority of growers are awaiting prices to reach Rs 150 a kg and are therefore not releasing stock in the market at present. Leading Kochi and Kottayam-based traders said that it was very hard to get high volume of rubber even at the current price.
A leading Kottayam-based trader said that growers are having a stock of atleast 100,000 tonnes anticipating a much stronger bull phase in the market. The sharp rise since the beginning of the new year caused a 6 per cent increase in the production in January.
Around 97,500 tonnes were produced in January against 91,900 tonnes in the same month last year.
A sharp northward movement in the consumption of NR also made the commodity dearer in the recent weeks. A 24 per cent hike was recorded in domestic consumption in January at 79,500 tonnes against 64,000 tonnes in January 2009, compared to 6 per cent increase in production.
source - www.business-standard.com/india/news
- Tight supply to keep rubber prices firm
KUALA LUMPUR: The tight supply of rubber caused by a progressive decline in global production is expected to keep prices of the commodity in Malaysia firm this week, dealers said.
The market would also see active participation by major tyre makers with the return of Chinese buyers after the Lunar New Year holiday, one of them said.
Over the past week, the local market drew foreign enquiries including from Japan and South Korea.
The Malaysian Rubber Board (MRB) official physical noon price for tyre-grade SMR 20 rose 21 sen to 1,036.5 sen per kg from 1,015.5 a week earlier while latex in bulk added 17 sen to 724.0 sen per kg from 707.0 sen per kg.
The unofficial closing price for SMR 20 went up 18 sen to 1,038 sen per kg from 1,020.0 sen per kg while latex in bulk gained 16.5 sen to 726 sen per kg from 709.5. —Bernama
Association of Natural Rubber Producing Countries Secretary-General Djoko Said Damardjati was reported to have said recently that global natural rubber supplies were tight and the outlook was bullish on favourable fundamentals.
A further drop in supply was anticipated in the coming months due to wintering while demand would continue to surge especially from China and Malaysia. — Bernama
source - www.theborneopost.com
TEA NEWS
- Dubai second largest export destination for Indian tea
Dubai remains the second largest export destination for both the Indian and Sri Lankan tea.
According to the Dubai Tea Trading Centre (DTTC), Sri Lanka, India and Kenya are Dubai’s top trading partners, contributing over 65 per cent of the total tea traded through Dubai.
DTTC, which is an initiative of Dubai Multi Commodities Centre (DMCC), has also announced a record 7.5 million kilos of tea traded through the Centre in 2009, despite the adverse weather conditions reducing global tea production.
The average 2009 auction tea prices in Sri Lankan was at $3.32 per kilo, Kolkata at $2.90 per kilo and Mombasa at $2.72 per kilo, with an overall average world tea auction prices increasing by 12.4 per cent compared to the same period in 2008, DTTC said.
This was due to the direct consequence of global decline in tea production, generally affected due to drought and delayed rainfall in major tea-producing countries.
Drought resulted in global black tea crop deficit of approximately 56.6 million kilos, equating to a decline of 3.2 per cent compared to 2008.
"In the initial few months of 2009, the global tea industry has witnessed an unavoidable production decline due to major drought in many tea-producing countries," Executive Chairman, DMCC Ahmed bin Sulayem said.
Sanjay Sethi, Director, DTTC, said the centre is growing consistently, with increased transactions and global tea producers, merchant exporters and buyers establishing their base here.
DTTC will also host the 3rd Global Tea Forum in Dubai, from March 9-10, 2010.
DTTC, at present, stocks teas from 13 producing countries, including Kenya, India, Sri Lanka, Indonesia, Malawi, Rwanda, Tanzania, Zimbabwe, Ethiopia, Vietnam, Nepal, China and Iran.
source - www.business-standard.com/india/news
- Africa tea prices soar at Mombassa auction
MOMBASSA (Commodity Online) : Africa’s top grade tea prices surged 7.3 percent to near record levels at the Mombassa tea auction, world’s largest tea auction, as unfavourable weather damaged crops.
According to Africa Tea Brokers Ltd, tea sold for as much as $3.09 a kilo at auctions on February 8 and 9, compared with $2.88 last week.
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Average tea prices rose to a record $3.12 a kilo last year after inclement weather cut tea production in Kenya, the world's biggest black-tea exporter, to 314 million kilos last year, the lowest since 2006, exacerbating a global shortage, it said in a market report.
According African Tea Brokers auction report, offerings during the action had totalled 143,876 packages (9,083,561.70 kilos) against 112,221 packages (7,070,326.00 kilos) offered for the same period last year.
Kenya dominated the auction by supplying the market with 6,643,764 kilos of tea and managed to sell 6,487,454 kilos followed by Uganda which provided offerings amounting to 1,316,046.50 kilos and managed to sell 1,195,710 kilos.
Rwanda secured the third place with offerings amounting to 557,003.20 kilos and managed to sell 550,957.20 kilos while Tanzania offered 400,210.50 kilos and managed to sell 373,290 kilos of its tea.
The gap may widen this year as a rebound in output from Africa, Sri Lanka and India fails to compensate for even quicker demand growth.
The crop continues to decline in Kenya, ATB said, adding that drier, warmer and windy weather was experienced in some tea-growing areas. The average price for top grades has traded a third higher so far this year than in the same period a year a ago.
Of the 9.08 million kilos offered at the sale this week, 97 per cent was sold. At the next auction, 7.96 million kilos will be sold and 7.14 million kilos the week after, according to ATB's report.
During the auction, Brighter BP1s were readily absorbed at USC32 to 38 dearer while mediums saw prices appreciating by USC18 to 50; lower mediums were USC12 to 28 dearer. Plainer sorts gained USC7 to 30.
Brighter PF1s met good competition advancing by USC18 to 40 while mediums were a strong feature at USC20 to 40 dearer; lower mediums gained USC10 to 35. Plainer PF1s saw better enquiry at USC18 to 30 above last levels.
source - www.commodityonline.com/news
NOTE
- GOOD TIME FOR BOTH RUBBER & TEA PLANTATION COMPANIES IN SRI LANKA
- OIL PRICES NOW ALMOST $80 / BARREL- GOOD FOR NATURAL RUBBER & OIL PALM
