June 2 Shanghai rubber morning review

Oil prices closed lower on Wednesday as they encountered technical resistance near $50, but recovered most of their earlier losses
following news that the organization may consider setting a production cap at an upcoming meeting, OPEC sources said.
The NYMEX July crude futures contract closed down $0.
09 at $
49.
01 a barrel.

News side: 1.
As of the end of May 2016, the rubber inventory in Qingdao Free Trade Zone has stopped falling and stabilized
.
2.
Honda's global production in April broke the record for the same period, climbing 18%
in China.

Spot market: the 14-year quotation of state-owned whole milk in the Shanghai market is about 9800-9900 (-300/-300) yuan / ton; Vietnam's 3L quotation is at 10400 (-200) yuan / ton; 15 years Thailand No.
3 smoke 11500 (-250) yuan / ton; RMB mixed rubber 9700 (+50) yuan / ton
.
Thai Hat Yai raw material market raw film 55.
59 (-1.
42) baht/kg; Tai San Tobacco Tablets 58.
02 (-0.
5) THB/kg; Field glue 53 (0) baht/kg; Cup glue 40 (-0.
5) baht/kg
.
Synthetic rubber: East China Qilu petrochemical styrene-butadiene rubber 1502 market price 10500 yuan / ton (-50), cis-butadiene rubber market price 10600 yuan / ton (-50).

Warehouse receipt inventory: Exchange warehouse receipts were reported at 301,860 tons, a decrease of 100 tons
.

At present, the inventory of Qingdao Free Trade Zone has stabilized, and the sales volume of heavy trucks in April has increased year-on-year, but the operating rate of downstream tire factories has declined, and the overall demand has shown signs of
decline.
With the successive cutting of domestic rubber production areas, the supply of raw materials began to increase, but due to the impact of dry weather in the early stage, the supply of production areas has not yet increased
.
The Shanghai rubber 1609 contract closed slightly lower overnight, focusing on the support around the previous low of 10200 below, and it is recommended to trade
in the 10200-10500 range in the short term.