⊳Sentiments are on the greener turf in the overseas market on Wednesday. TOCOM rubber futures rose from the five week low after the yen weakened against the US dollar following the comments from the US Fed Chief on interest rates last day. SHFE and AFET rubber futures rose as well. Upbeat data from China supported the sentiments too. However, sharp rallies are unlikely owing to weak market fundamentals.
⊳ In the local market, RSS4 dipped further on Tuesday to its lowest level in about two months in subdued trades. According to sources, demand as well as arrivals to the market were weak. On NMCE, the commodity remained under pressure. The benchmark August rubber futures were held in very tight ranges. However, gains in the overseas market and comments from the Kerala State Finance Minister on rubber procurement are likely to lend support.
⊳ Kerala State Finance Minister says Rs.10 crore have been enmarked to procure natural rubber and likely to pay Rs.5 per kg more than the daily domestic market price of rubber.
⊳ Inventories in Qingdao, China’s main rubber trading hub, drop to 239,000 mt from 250,300 mt as of June 30, according to Qingdao International Rubber Exchange Market.
⊳ The Association of Natural Rubber Producing Countries’ 7th Annual Rubber Conference to be held in Kuala Lumpur, Malaysia on 13th October 2014.
⊳ Malaysian NR imports down 7.8 per cent in May to 59486 tonnes on MoM basis.
⊳ Stockpiles monitored by Shanghai Futures Exchange rose 1.8 per cent to 151,784 mt Jul. 10, most since Jan. 16.
⊳Crude rubber stockpiles held at Japanese warehouses fell 1.6 percent to 20,874 metric tons on June 30, according to data from the Rubber Trade Association of Japan.
⊳ Natural Rubber imports by China stood at 280000 tonnes in the month of June according to its customs agency.
⊳India’s NR imports in June surged 41.5% from a year ago to 32,550 tonnes the state-run Rubber Board said.
RUBBER Aug NMCE
While prices were held near the considerably good support of 14100, moves were rather indecisive. It is mandatory to trade below 14100 with robust volume to continue the prevailing broad weakness. Else, brief pullbacks are likely to 14300-14400 ranges.
Source: Geojit Comtrade
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