Technical rebound of the hottest natural rubber

Natural rubber rebounded technically

continued to fall unilaterally, causing ru1301, the main contract of Shanghai rubber, to hit a two-year low of loading and unloading samples on July 24. Stimulated by many positive factors, Shanghai Jiaotong launched a technical rebound. The price of the main contract ru1301 rose to 22935 yuan on July 30, and all machines could not operate normally. Compared with the low of 21900 yuan on July 24, it increased by 1035 yuan, or 4.73%

many benefits appeared, causing a technical rebound in natural rubber futures:

recently, the European Central Bank President Draghi said that the European Central Bank would fully support the euro, which greatly boosted market sentiment. The low level of the euro rebounded strongly, and the high level of the dollar was blocked, causing the global commodity market prices denominated in dollars to fall, support and rise, and constitute a positive support for the price trend of the natural rubber market. The tightening relations between Iran and Western countries and the continued unrest in Syria threatened the global crude oil supply, and the US crude oil index rebounded strongly. At the same time, due to the significant increase of hedging demand in the global financial market in the early stage, it plays a strong supporting role in the technical rebound of natural rubber

the Minister of domestic planting industry and Commerce of Thailand said recently that in order to curb the further decline of rubber prices in the international market, Thailand clearly proposed to restrict the export of rubber. The natural rubber Policy Committee of Thailand decided to allow the Thai Rubber Organization under the Ministry of agriculture to use the 15 billion baht (about 470million US dollars) previously approved by the cabinet to intervene in the market price of domestic rubber (relevant district and municipal governments), which will reduce the supply of natural rubber and reduce the seasonal pressure of natural rubber

there are also positive factors. The Ministry of Finance said that it will implement and improve the structural tax reduction policy in the second half of the year. In the second half of the year, the state will also strive to increase investment and consumption and maintain steady economic growth by implementing active fiscal policies, including structural tax reduction, reform of the tax system and accelerating the reform of key areas and key links

note: this reprint is for the purpose of transmitting more information expressed by Gerry Boyce, the managing director of the company, and does not mean agreeing with his views or confirming the authenticity of his content