⊳ Sentiments stayed muddled in the Indian natural rubber market. Despite steep declines witnessed in the overseas natural rubber market, RSS4 grade rubber traded rather steady in the physical market on Thursday while on NMCE, the commodity trimmed initial losses with the near month October rubber futures culminating the session in green. Thin supplies to the market probably have had lend lower level support even as the demand from the tyre sector stayed subdued.
⊳ As the week’s session culminates, a rebound is being witnessed in natural rubber prices in the major international market. SHFE rubber futures bounced up about four per cent while rubber futures on TOCOM gained more than two per cent. Expectations that Thailand may take necessary steps to prop up the commodity amidst farmers protest lend support.
⊳Vietnam rubber exports in August stood at 114000 tonnes and 13300 tonnes is anticipated to be exported in September according to nation’s Ministry of Agriculture and Rural Development.
⊳ Thai rubber farmers plans protest rally as rubber prices fall to multi year low.
⊳ The Thai government has postponed the sale of its remaining 100,000 tonnes of rubber stocks to avoid further depressing prices according to a senior Agriculture Ministry official.
⊳ International Rubber Consortium sees natural rubber production declining in 2014 by 2.3 per cent to 11.8 million tonnes while stockpiles are seen around 2.3-2.5 million tonnes.
⊳ Rubber inventories in the warehouses monitored by SHFE declined one per cent to 164841 tonnes last week.
⊳ Inventories in Qingdao, China’s main rubber-trading hub, fell to 192,200 mt yday from 217,400 mt on Aug. 29, according to Qingdao International Rubber Exchange Market.
⊳ The Thai government has approved 30 billion baht ($931 million) in soft loans for cooperatives and companies to use to buy rubber from farmers as a way of propping up prices.
⊳ Vietnam’s rubber exports rises 12 per cent to 113922 tonnes in August on MoM basis according to the nation’s General Customs Department.
RUBBER Oct NMCE
Breaking and sustaining of the immediate resistance of 12050 could take prices higher towards 12250, but it is mandatory to consistently trade above the same for further upsides. Alternatively slippage past 11800 could call for 11600/11450 levels.
Source: Geojit Comtrade
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