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[Geojit Comtrade] Daily report on Natural Rubber: May 3, 2013

MARKET COMMENTARY

As the week’s session culminates, natural rubber prices in the overseas market are seen rising in tandem with other commodities after European Central Bank slashed the interest rates last day. SHFE rubber futures jumped five per cent to hit a two week high. Meanwhile, the trend setting TOCOM exchange remained closed today on account of Constitutional Memorial Day. In the Indian market, a mixed trend was witnessed on Thursday. NMCE rubber futures reversed initial losses and ended mostly flat while in the physical market, RSS4 steadied near Rs.162 a kg. Activities are mostly subdued and buying interest dull. Meanwhile, tapping is likely to gather pace and production is seen rising in coming days with the major rubber growing areas in Kerala receiving rains for the past few days aiding tapping.

MARKET NEWS

Thai govt. sees the nation’s natural rubber production rising by 5.2 per cent to 3.86 million tonnes in 2013 compared to 3.67 million tonnes produced last year.

The Thai government has no immediate plan to sell rubber from stockpiles as it will push prices of the commodity lower according to deputy farm minister Yuttapong Charasathien.

Crude rubber stockpiles held at Japanese warehouses rose 2 percent to 15,976 metric tons on April 20, according to data from the Rubber Trade Association of Japan.

Yokohama Rubber Co. announced plans to build a new plant to manufacture tires for trucks and buses in the United States and will have an annual production capacity of 1 million tires.

According to Union Commerce and Industry Minister Anand Sharma, import duty on natural rubber was to be hiked soon though the Minister of State for Finance in a written reply in Lok Sabha ruled out a hike for now.

Rubber Stockpiles in the Qingdao bonded zone, climbed to 371,100 metric tons at the end of this month from 366,900 tons on April 15.

According to Indonesian Rubber Association, natural rubber output during 2013 may decline to 3.0 million tonnes from the earlier estimates of 3.2 million tonnes due to wet weather.

TECHNICAL VIEW

RUBBER June NMCE

Broad Trend: Seen weak.

Near Term: Requires clearing and sustaining 16400 to continue buying momentum. Else, sideways movement with a mild negative bias may be seen for the day.

TURNAROUND

Resistances

LEVELS

Supports

16200/16430

16400-15800-15650

15900/15800

16550/16800

15650/15480

16960/17050

15350/15250

 

Source: Geojit Comtrade

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