[Geojit Comtrade] Daily report on Natural Rubber: August 26, 2014

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MARKET COMMENTARY

 While the broad sentiments stays feeble, in the local market is on a consolidation mode. In the physical market, the grade hanged near Rs.130 a kg in dull trades where as in the segment ended lower following an initial rise on Monday. Reports that ’s National Council for Peace and Order approved selling of state weighed on the overall market mood amidst weak fundamentals. In the meantime, natural in the overseas market are seen declining on Tuesday. TOCOM rubber retreated from the two week high on worries that moves to off-load stocks by Thailand may lead supply glut to widen and will drag prices further lower which is already languishing near multi-year lows.

 MARKET NEWS

  • Indonesian production likely to miss target owing to prolonged wintering in certain rubber growing area in the country. According to Rubber Association of Indonesia, production may be 6.0% less than the target of 3.2 million tonnes.
  • Thai Rubber Growers Network urge govt. to suspend the plans to sell rubber from stockpiles.
  • National Council for Peace and Order approves selling 210,000mt from state stockpiles according to Post Today newspaper report.
  • Vietnam will eliminate tax Oct. 2 according to Association citing circular issued Aug. 18 by finance ministry.
  • Indonesia to form Rubber Task Force involving govt. Officials, rubber producers and banking sector to boost prices.
  • India Rubber Meet 2015 (IRM 2015) will be held in Kerala from 4 to 6 March 2015.
  • The global surplus of natural rubber will shrink 46 percent in 2015 as demand expands and farmers reduce because of decreasing prices, according to the International Rubber Study Group.
  • Thailand plans to reduce plantation area by 100,000 rai (16,000 hectares) a year for 7 years, according to the Office of the Rubber Replanting Aid Fund.

TECHNICAL VIEW

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RUBBER Sep

 Unsuccessful moves to break above 13050 in the previous session saw a retreat towards 12800 ranges. While a consolidation inside 13000-12700 ranges is in progress, slippage past 12700 with considerable volume will strengthen weakness. Now, it is mandatory to break and sustain above 13050 to see some positive moves.

TURNAROUND

Resistances LEVELS  Supports
13050/13150 13050-12700 12800/12700
13280/13350   12650/12500
13480/13560   12400/12200

 

Source: Geojit Comtrade

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