MARKET COMMENTARY
⊳As the week’s session commences, natural rubber is trading in a positive note in the major overseas market. SHFE rubber futures jumped more than three per cent while on TOCOM the commodity was up over one per cent probably supported by a decline in stocks in warehouses monitored by SHFE. In the mean time, natural rubber in the Indian market last week stayed under pressure. Jaded demand from the tyre sector kept the market sentiments feeble despite it being the peak production phase. Weakness in crude oil prices as well as natural rubber prices in the international market weighed on the market sentiments too.
MARKET NEWS
⊳Weekly data from the SHFE showed inventories in the warehouses monitored by the exchanged dropped 4.1 per cent to 149116 tonnes.
⊳A major fire destroyed over 30,000 rubber trees, among other horticulture plants, in Ralan area of Wokha district in Nagaland, a report by the Nagaland Post
⊳Crude rubber inventories in the Japanese ports stood at 11904 tonnes as of March 10, down 3.0 per cent from the last date of inventory, (February 28) according to Rubber Trade Association of Japan.
⊳In an attempt to tide over the prevailing crisis in the rubber sector, the Rubber Board, in co-operation with Rubber Producers Societies (RPS), self help groups, and other voluntary organisations will organise an awareness campaign to propagate the message of sustainable rubber cultivation in the heartlands of rubber.
⊳Southeast Asian countries expect to develop a rubber-trading floor for regional rubber-producing countries to actively fix export rubber prices on the world market, Vietnamese and Thai officials announced during talks.
⊳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.
⊳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.
TECHNICAL COMMENTRY
RUBBER Mar NMCE
In volume-less trades, range bound moves are being witnessed inside 12600-12300 levels. A breakout from either the sides are necessary for further directional moves.
Source: Geofin Comtrade
