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[Geojit Comtrade] Daily report on Natural Rubber: November 12, 2013

MARKET COMMENTARY

A mild rebound is being witnessed in RSS4 in the local natural rubber market. On Monday, NMCE rubber futures, edged up for the second consecutive session on short covering while in the physical market the grade firmed up. However, the broad underlying sentiments continue to be on the weaker side and the market fundamentals generally stayed in favour of the bears.

In the overseas market, natural rubber prices are in red on Tuesday. TOCOM rubber futures resumed to fall while on SHFE, the commodity stretched losses as investors are awaiting the outcome of the key Chinese Communist Party policy meeting for cues on the nation’s future economic policy. However, a robust auto sales data from the top consumer lend support.

MARKET NEWS

Wholesale deliveries of cars, multipurpose and sport utility vehicles rose to 1.61 million last month, data from the state-backed China Association of Automobile Manufacturers showed.

China, the world’s largest natural rubber importer, imported 190,000 tons of the material in Oct this year, 11.76% more than in the corresponding period of last year.

Rubber inventories in the warehouses monitored by SHFE rose 4.4 per cent to 154,194 tonnes last week.

Natural rubber imports by India in October shoot up 81 per cent to 33486 tonnes while production, consumption as well as exports dropped 7.3, 3.57 and 59 per cent respectively on a year on year basis.

Reports says China bought around 54,000 mt of Ribbed Smoked Sheet grade natural rubber from local suppliers for government stockpiles.

According to Chinese media reports, the rubber industry has asked the National Development and Reform Commission to waive the 20 percent import tariff on rubber for tire manufacturing.

Bridgestone to increase output of passenger car radial tire at its plant in Wuxi by 5,300 tires/day, according to a statement to the Tokyo Stock Exchange.

TECHNICAL VIEW

 RUBBER Dec NMCE

15950-16000 ranges posses to be the immediate resistance, which if broken with considerable volume could call for an extension of present short covering moves towards 16100-16250 levels. Else, anticipate higher level selling.

TURNAROUND

Resistances

LEVELS

 Supports

15800/16000

16250-15950-15550

15750/15550

16100/16250

15400/15350

16400-16540

15150/14900

 

Source: Geojit Comtrade

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