MARKET COMMENTARY
Indian natural rubber market continued be under the strangle hold of bears. NMCE rubber futures dwindled, dropping over one per cent while in the physical market quotes for RSS4 lowered to around Rs.158.50 a kg. Lack of buying interest carried on push prices south. The demand from the major natural rubber consuming sectors remains muted amidst rise in production and stocks. Weakness in the overseas market weighed on the sentiments too. Still, anticipation of a recovery in natural rubber prices during the lean production season and higher prices in the overseas market is likely to lent lower level support to prices.
A mixed trend is being witnessed in the global natural rubber market on Tuesday. TOCOM rubber futures inched lower, extending the previous session losses while SHFE and AFET rubber futures rose. The benchmark July rubber futures in TOCOM slipped tracking yen. While concerns over demand from the top consumer China weighed on, investors are awaiting the US FOMC meeting outcome and other key economic release from US and China.
MARKET NEWS
According to Rubber Trade Association of Japan, crude rubber inventories in the Japanese ports fell by 202 tonnes to 6934 tonnes in the 10 days to January 10 from a four month peak marked at the end of 2012
According to Vietnam’s General Statistics Office, the nation shipped 117,000 tons of rubber in Dec., up 11% from previous assessment of 105,000 tons.
TOCOM January rubber futures expired with 124 lots being delivered compared to 288 lots being delivered in December.
Rubber inventories in the warehouses monitored by SHFE fell 3.3 per cent 98007 tonnes in the previous week. According to reports, the decline is largely owing to storage regulations that forced some merchants to withdraw stocks.
According to IRSG, Production is set to outpace consumption by 179,000 metric tons this year and 153,000 tons in 2014.
According to AIRIA, rubber imports into India in January and February are likely to fall further on a sharp drop in local prices in the past three months due to lower December shipments.
TECHNICAL VIEW
RUBBER Feb NMCE
Broad Trend: Weak
Near Term: Support at 15500 region if held, could call for a bounce back. Else, expect to continue weakness.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
15750/15900 |
15900-15500 |
15540/15260 |
|
16050/16240 |
|
15100/14950 |
|
16400/16540 |
|
14700/14500 |
Source: Geojit Comtrade
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