MARKET COMMENTARY
⊳In volume-less trades natural rubber in the Indian market inched lower tracking losses in the major overseas natural rubber market. On NMCE, the front month April rubber futures shed 0.73 per cent while in the physical market RSS4 grade rubber ended rather flat at Rs.127 a kg. While jaded demand from the tyre sector continued to weigh on overall market sentiments, declines in the natural rubber prices in the major overseas market mounted pressure on prices to move south. Still, sops by the Kerala government in the recent Budget provided some solace.
⊳On Tuesday, sentiments are mixed in overseas market with TOCOM rubber futures inching up and SHFE rubber futures ticking lower after the previous day’s fall. Declining crude oil prices continued to dampen the market sentiments as investors chose to stay on the sidelines ahead of the US Fed meeting.
MARKET NEWS
⊳Kerala Budget allocates Rs.300 crore Rubber Price Stabilisation Fund to purchase 20000 tonnes and fixes support price for rubber at Rs.150 a kg.
⊳Union government considering raising import duty on natural rubber to 25 per cent from the present 20 per cent according to the Commerce minister.
⊳Rubber inventories in the warehouses monitored by SHFE stayed unchanged at 156505 tonnes.
⊳Thailand and China are expected to sign a contract in May for China to purchase 2 million tonnes of Thai rice and 200,000 tonnes of rubber, following further discussions between the countries.
⊳India’s natural rubber output fell 13.5% on year to 50,000 tn in February from 57,800 tn a year ago, according to data from the Rubber Board. Consumption in February was at 82,500 tn, up from 79,375 tn a year ago while imports in rose around 42% on-year to 28,806 tn.
⊳The Singapore Exchange (SGX) is in preliminary talks to be part of a Southeast Asian rubber exchange that would bring together the top three producing nations.
⊳Indian Rubber Dealers Federation not to buy RSS4 grade rubber from onwards as a protest against government’s failure to help crisis-ridden rubber sector and has announced indefinite closure of shops from 17th March onwards.
⊳The 2015 World Rubber Summit jointly organized by International Rubber Study Group and SingEx Exhibitions to be held in Singapore on March 24 and 25.
TECHNICAL COMMENTRY
RUBBER Mar NMCE
As long as resistance at 13000 stays undisturbed sideways movement inside 13000-12480 ranges are likely.
Source: Geofin Comtrade
