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[Geojit Comtrade] Daily report on Natural Rubber: January 21, 2014

MARKET COMMENTARY

On Monday, RSS4 in the Indian market were up on short covering. The commodity in the physical market bounced off from the 46- month low hit last week tracking gains on futures segment. NMCE rubber futures were seen stretching the previous day’s gains, rising more than 1.7 per cent even as the broad underlying trend still remained feeble. However, with market to enter the lean production phase starting February, anticipation of a recovery may lend lower level support. In the meantime, natural rubber in the international market is in red on Tuesday. TOCOM rubber futures pared initial gains and ticked lower while SHFE and AFET rubber futures dropped. Concerns over demand from the top consumer China continued to weigh on.

MARKET NEWS

Crude rubber stockpiles held at Japanese warehouses rose 4.8 percent to 13,164 metric tons on Jan. 10, according to data from the Rubber Trade Association of Japan.

Rubber inventories in the warehouses monitored by SHFE rose 5.6 per cent to 200815 tonnes last week.

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.

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

TECHNICAL VIEW

 RUBBER Feb NMCE

The short covering rallies witnessed in the previous session faces resistance near 15550 and successful attempts to clear and sustain above the same could point towards a reversal. Yet, it is mandatory to break above 15750 convincingly to continue to up-momentum. Else, higher level selling may be witnessed.

TURNAROUND

Resistances

LEVELS

 Supports

15400/15550

15750-15550-14850

15200/15100

15700/15800

15000/14850

15950-16050

14800/14600

 

Source: Geojit Comtrade

Download this report (full content – PDF file) here

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