Natural Rubber

Overseas rubber retreated slightly. The main force contract of TF05 fell by 0.3 or 0.22% to 137.9. The main force contract of JUR07 fell by 1.3 or 0.69% to 188.2. The SHFE rubber went up. The main force contract of RU05 rose by 30 or 0.26% and closed at 11,720, and the main force contract of NR04 rose by 55 or 0.56% and closed at 9,860. The quoted price for Qingdao rubber in USD fluctuated with normal inquiries. The quoted price of RSS3 was $1,640 per ton. The spot price or CIF of STR20 was $1,390 per ton. The CIF of SMR20 in August was $1,435 per ton. The CIF of mixed rubber from Thailand in May was $1,420 to $1,430 per ton.

News from the official website of the Ministry of Agriculture and Rural Affairs: In 2020, the key points of the work of the Agricultural Reclamation Bureau of the Ministry of Agriculture and Rural Affairs will focus on seven areas of work, including comprehensively completing the hard task of poverty alleviation for poor farms, working together to deepen the reform and innovation of the agricultural reclamation system, promoting high-quality development of leading industries, strengthening the public brand construction of agricultural reclamation, guiding the upgrading of the natural rubber industry, piloting the evaluation and monitoring of the quality and influence of the economic development of agricultural reclamation, and strengthening the construction of model institutions, starting a policy study on precision support for natural rubber production protection zones.

In Japan, it is the Emperor's birthday today, and the market is closed. Rainfall in Thailand is normal in the dry season, with an average monthly rainfall of 4.36mm in 6 months, which is about 22% lower than the historical period of 5.47mm. If the average monthly rainfall in Thailand thereafter remains above 80% of the normal value, the continued dry climate will be expected to be alleviated. The operating rate of downstream all-steel tires is higher than that of half-steel tires, which was in line with the situation in the terminal replacement market. After the epidemic is stable, the recovery of passenger car demand will lag behind the demand recovery for commercial vehicles.

Futures Operation Advice: The SHFE rubber went up first and then retreated, like the trend of industrial futures. The main contract of RU05 was relatively strong, and it is advised to hold the long position and set a stop at the recent low level at 11,540 below.

(For reference only)