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[Geojit Comtrade] Daily report on Natural Rubber: December 16, 2013

MARKET COMMENTARY

A consolidation was witnessed in the Indian natural rubber market in the week gone by. In the physical market, RSS4 grade rubber was see steadying near Rs.150-151.50 a kg while on NMCE, the benchmark January rubber futures were caught inside the tight ranges of Rs.15350-15650 per 100 kg, awaiting fresh triggered for further directional moves following the recent steep decline towards more than a three and a half year low in the week earlier. The sentiments were rather mixed. While the demand from the consuming sector remained subdued, anticipation of probable market intervention by the government and rising natural rubber prices in the overseas market buoyed prices.

As the week’s session commences, natural rubber is trading rather steady with a mild negative bias. TOCOM rubber futures reversed initial gains after hitting a three month high probably weighed down by slowing manufacturing activity in China.

MARKET NEWS

China HSBC flash manufacturing PMI dip to a three month low to 50.5 in December.

The World Rubber Summit 2014 is to be held at the Marina Bay Sands Expo & Convention Centre in Singapore, on May 19-21, 2014.

Rubber inventories in the warehouses monitored by SHFE rose 2.4 per cent last week to 165,764 tonnes.

According to Office of the Rubber Replanting Aid Fund, Thailand to restart collecting fees on rubber shipments from January after a 4- month exemption.

Natural rubber imports by India in November declined 4.57 per cent to 22872 tonnes on year on year basis. Production dropped as well, by 7.1 per cent to 91000 during the same period.

China’s natural rubber imports surged to 270000 tonnes in November, a rise of 42 per cent on month on month basis and 25 per cent year on year.

In the meeting of the Executive Committee of Rubber Board, the members demand either a ban on natural rubber imports or temporary suspension of imports against advance licence. The Committee also suggested to raise the import duty to 25 per cent and urged the State and the Central Government to implement a scheme for joint procurement of rubber.

TECHNICAL VIEW

 RUBBER Jan NMCE

A consolidation is being witnessed currently. As long as 15200- 15100 ranges hold downside, pullbacks are likely. However, it requires clearing the immediate resistance of 15650 for further upside and successful attempts to break 15950 could induce positive sentiments.

TURNAROUND

Resistances

LEVELS

 Supports

15650/15800

15950-15650-15200

15350/15200

15950/16050

15100/15000

16150/16250

14950/14800

 

Source: Geojit Comtrade

Download this report (full content – PDF file) bellow:

Rubber_Report_16__Dec_2013

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