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[Geojit Comtrade] Daily report on Natural Rubber: June 6, 2013

MARKET COMMENTARY

Sentiments were mixed in the local natural rubber market on Wednesday. On NMCE, RSS4 traded rather flat barring the near month June rubber futures which inched higher. Limited arrival continued to buoy prices in the physical market amidst the arrival of monsoon in Kerala and improving demand. The grade ruled firm near Rs.171 a kg. However, downtrend in the overseas market weighed on the overall market sentiments, capping gains. Natural rubber prices continued to decline on Thursday with TOCOM and SHFE rubber futures sliding more than 1.5 per cent. With global economic prospects looking murkier, concerns over demand in the backdrop of high inventories and anticipation of an increase in output from the top natural rubber producing countries pondered over the market. In the mean time top three producers, Thailand, Indonesia and Malaysia will meet next week to devise plans to stabilise natural rubber prices.

MARKET NEWS

According to Rubber Trade Association of Japan, crude rubber inventories in the Japanese ports as of May 20 fell 756 tonnes to 14881 tonnes over a period of ten days.

According to ANRPC, natural rubber production from Indonesia is seen rising 5.0 per cent to 3.18 million tonnes while that of Malaysia is seen at 980000 tonnes, up 6.8 per cent this year.

Top three natural rubber producing countries, Thailand, Indonesia and Malaysia, to meet in Indonesia from June 12th to 14th to discuss measures to stabilise natural rubber prices.

Southwest monsoon hits Kerala.

Rubber inventories in the warehouses monitored by SHFE dips 0.6 per cent to 114225 tonnes last week.

Rubber inventories in Qingdao, China’s main hub for the commodity fell to 360,000 metric tons today, from 363,300 tons on May 15 according to the Qingdao International Rubber Exchange.

International Rubber Study Group announced a Sustainable Natural Rubber Action Plan with the key objective to promote the use of voluntary sustainable natural rubber standards throughout the global rubber economy.

Myanmar exported about 9000 tonnes of raw rubber during the first four month of 2013.

TECHNICAL VIEW

  RUBBER July NMCE

Despite breaching 16800, prices failed to sustain over the same. For the day, prices are likely to continue consolidation inside 16850- 16380 ranges and require a breakout from either the sides for further directional moves.

TURNAROUND

Resistances

LEVELS

Supports

16850/16900

17200-16850-16370

16600-16550

17020/17200

16400/16250

17300-17400

16140/16000

 

Source: Geojit Comtrade

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