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[Geojit Comtrade] Daily report on Natural Rubber: January 17, 2014

MARKET COMMENTARY

Local natural rubber remained under the strangle hold of bears. On Thursday, RSS4 in the spot market was quoted at its weakest level since early December. While the demand stayed muted, worries over further decline in prices build additional selling pressure amidst weak cues from the overseas market. NMCE rubber futures were bound south too. The benchmark February rubber futures inched further lower and is probably heading to post losses for the third successive week. In the overseas market meanwhile, natural rubber prices are seen resuming its downtrend on Friday after inching up during the past few days. TOCOM as well as SHFE rubber futures dropped more than one per cent. Lingering concerns over demand from the top consumer China weighed on the overall market sentiments.

MARKET NEWS

Rubber inventories in Qingdao, China’s main hub for the commodity, advanced to 304,300 metric tons today, from 290,700 tons at the end of December, the Qingdao International Rubber Exchange said.

China imported 350,000 tonnes of rubber in December, up 66.7 percent on the same month a year ago.

Crude rubber inventories at Japanese ports rose 5.0 percent from 11 days earlier to a 6-1/2-month high of 12,560 tonnes as of Dec. 31, data from the Rubber Trade Association of Japan showed.

According to Thai Office of Agricultural Economics, rubber production in Thailand may rise 4.3 per cent in 2014 to 4.03million tonnes.

Annual car sales in India declined for the first time in 11 years in 2013, posting a 9.59 percent fall, according to SIAM.

Natural rubber imports by India in December jumps 46 per cent to 26853 tonnes year on. Production falls 5.3 per cent to 108000 tonnes while consumption rose about 1.4 per cent to 79500 tonnes during the same period.

Natural-rubber output from growers representing 93 per cent of global production estimated to expand to 11.15 mln tons in 2013 on growth in Thailand, Indonesia and China, according to Association of Natural Rubber Producing Countries.

TECHNICAL VIEW

 RUBBER Feb NMCE

With slippage past 15200 ranges the prevailing weakness has strengthened. Even as mild pullbacks to 15400-15500 ranges may not be ruled out, selling pressure is likely to persist.

TURNAROUND

Resistances

LEVELS

 Supports

15300/15400

15750-15550-15050

15100-15050

15550/15700

14900/14800

15800/15950

14600/14500

 

Source: Geojit Comtrade

Download this report (full content – PDF file) here

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