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[Geojit Comtrade] Daily report on Natural Rubber: Aug 26, 2013

MARKET COMMENTARY

Following a weak start for the week, RSS4 in the Indian market were seen recovering by the later half propped up by positive moves in the overseas market and depreciating local currency amidst thin arrivals to the market. The most active September rubber futures on NMCE bounced back after making a low of Rs.17501 per hundred kg. However, it posted losses for the second successive week. A rebound witnessed in the overseas market coupled with rupee plunging to record lows narrowed down considerably, the difference between the prices in the Indian RSS4 and South-East Asian tyre grades though RSS4 continues to stay on a premium.

Natural rubber prices in the overseas market had a solid start with TOCOM and SHFE rubber futures jumping over two per cent. Anticipation of improved demand from China, rise in crude oil prices and decline in inventories aided the sentiments. The most active January rubber futures on TOCOM exchange rose to a three month high.

MARKET NEWS

Rubber farmers from northern Thailand plan to stage a mass protest on Sept 3 if the government does nothing to prevent rubber prices from sliding further.

Rubber inventories in the warehouses monitored by SHFE rose 1.7 per cent to 124,740 tonnes.

Crude rubber stockpiles held at Japanese warehouses fell 10.6 percent to 7,571 metric tons on Aug. 10, according to data from the Rubber Trade Association of Japan.

Kochi to host two international rubber conferences – Asian Latex Conference (ALC) 2013 on September 5 and 6 and India Rubber Summit and Dinner (IRSD) 2013 on September 7.

The Thai government planned to spend 30 billion baht to support farmers and rubber processors, Deputy Prime Minister Yukol Limlamthong said on Aug. 15.

Rubber inventories in Qingdao, China’s main hub for the commodity fell to 298,300 metric tons from 313,100 tons on July 31 according to the Qingdao International Rubber Exchange.

Natural rubber production in India tumbled 32.4 per cent in July to 46000 tonnes and consumption dropped 3.75 per cent to 82500 tonnes on year on year basis. In the mean time, imports jumped 39.2 percent to 29311 tonnes during the same period.

TECHNICAL VIEW

 RUBBER Sep NMCE

A range bound trade inside 18250-17500 could be witnessed and requires clearing any of the either side to resume directional moves.

TURNAROUND

Resistances

LEVELS

 Supports

18100/18250

18250-17800-17500

17800/17600

18380/18500

17500/17380

18700/18800

17250/17100

 

Source: Geojit Comtrade

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