Rubber prices on downtrend

NEWS DIGEST

Rubber trade was thin on Thursday as most overseas buyers held back with the Tokyo futures market closed for a holiday, traders said. The Tokyo Commodity Exchange, the global trend setter for rubber prices, was still on a downward trend and could fall to the 180-yen per kg level in the medium term, under pressure from rising supply in producing countries, traders said.

"It looks like TOCOM will continue to slide downward tomorrow," said a trader in Thailand, the world's top exporter of the commodity.

Technical sentiment has been bearish since the key distant contract fell below the closely watched 200-yen level last week, traders said. On Wednesday, the benchmark TOCOM rubber contract for April delivery fell 3.5 yen a kg from Tuesday's close to 190.5 yen a kg.

April TOCOM rubber fell to a one-year low of 188.6 yen a kg at one point on Wednesday. It has fallen about 14 percent since the start of the month. "Today is a quiet day. Overseas buyers are waiting on the sidelines. They expect the price to go down further," a Singapore-based trader said. "Although the holiday season is coming, they would prefer to buy cheaper rubber than buy now," he said referring to the Christmas and the New Year holidays.

Vietnam coffee output seen up 22%

Vietnam's coffee production for 2006-07 (Oct-Sep) is seen at 990,000 tonne, up 22 per cent from 810,000 tonne a year ago, US Department of Agriculture's Global Agriculture Information Network report said.

Improved weather conditions, lower pest attacks, and new production from maturing plants have raised prospects for Vietnam's coffee production. Robusta coffee production continues to dominate while Arabica coffee output accounts for 2.5 per cent of Vietnam's total coffee production, the report said. Vietnam's domestic coffee consumption is seen rising to 51,000 tonne but would continue to account for only 5 per cent of total production. Ending stocks for 2005-06 were very low because of higher-than-expected exports, the report said quoting traders and coffee dealers.

Food processors to get Rs 75 lakh grant

The government will extend grants up to Rs 75 lakh for technology upgradation, modernisation or setting up of food processing units in the country.

The grants have maximum component of Rs 50 lakh for general areas and Rs 75 lakh for difficult areas, Food Processing Minister Subodh Kant Sahai said in the Lok Sabha.

He also said the financial assistance will be extended to the implementing agencies.

Further, Sahai said that the country was on its way to achieve the set target of Rs 22,538.18 crore from exports of processed food.

A National Institute of Food Technology Entrepreneurship and Management will be set up at Kundli in Haryana, which will act as a knowledge centre for the sector, the minister added.