MARKET COMMENTARY
Trend was partially mixed in the domestic natural rubber market on Tuesday. RSS4 rubber ruled flat in the physical market as well as futures market while latex (drc 60%) continued to decline. The underlying sentiments remained in favour of bears with higher production and stocks amidst slowing auto sales and muted demand. Still, the local produce being quoted lower than that prevailing in the overseas market opening prospects for exports and lower imports and upcoming lean production phase is likely to lend lower level support to prices.
Natural rubber is swinging between positive and negative turfs in the overseas market on Wednesday. TOCOM rubber futures resumed its uptrend after the previous session declines while AFET and SHFE rubber futures are seen paring their initial gains. TOCOM rubber futures climbed to a 10-month high bolstered by weakening yen. However, activities are likely to slowdown in coming days owing to week long Spring Festival holidays in China next week. In the mean time, China was seen chasing tyre-grade rubber ahead of holidays.
MARKET NEWS
According to Rubber Board, India’s synthetic rubber consumption rose by 17 per cent to 36,710 tonnes in October last year while the production rose by 5 per cent to 9,006 tonnes during the period.
According to Association of Natural Rubber Producing Countries, rubber imports by the top consumer China surged 18 per cent during 2013 to 3.37 million tonnes.
According to Malaysian Rubber Board, natural rubber output may expand 6.5 per cent in 2013 on improving yield and higher prices.
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.
According to IRSG, NR production is set to outpace consumption by 179,000 metric tons this year and 153,000 tons in 2014.
TECHNICAL VIEW
RUBBER Feb NMCE
Broad Trend: Weak
Near Term: Higher level selling likely as long as 16250 caps upside.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
16050-16100 |
16250-15500 |
15700/15500 |
|
16240/16400 |
|
15380/15260 |
|
16540/16700 |
|
15100/14900 |
Source: Geojit Comtrade
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