The expected correction after the sharp drop on the futures markets a week ago was not spectacular, but step by step the market has indeed come up again. In general, a rise of 4%.
Physical prices have actually dropped significantly less than the futures markets would indicate and that hasn’t changed and prices have even gone up more.
Where one still thought this morning in the Far East and in the USA that a first deal in the trade conflict was made over the weekend, the Chinese delegation has this same morning announced that they want to reconvene for phase 1, so we’re back at square one.
This latest news does not change the market development. At this moment, the bad weather in the producing countries does more for the rubber prices than speculations about improvements of the USA-China relations, or even the not so positive economic news from China.
Expectation: we think that the market will manifest itself in the same manner as last week with small steps up that indicate the production situation.
US $/Euro 110.35
Oil (Crude Oil future) 53.50
Gold $ 1.495
Source: Tegonsa (www.tegonsa.com)