MARKET COMMENTARY
Natural rubber ruled mostly flat in the Indian markets on Monday. Despite a bounce back from the two and a half year low, NMCE rubber futures were held in thin ranges and in the physical market, RSS4 was quoted around Rs.157 a kg. While, the underlying market fundamentals are on the weaker side, attention has now turned on to today’s meeting convened by the Union Commerce Minister on imposition of higher import duty on natural rubber. In the mean time, rubber industry body, in its pre-budget presentation, has asked for lowering import duty.
Natural rubber continued to move south in the overseas market on Tuesday weighed down by concerns over demand from China and on renewed concerns over Euro Zone crisis. TOCOM rubber futures dropped to a two month low as political uncertainty in Italy reignited fears of Euro Zone crisis. Also, weighing on the market sentiments are increasing stockpiles in China and moves by Thailand not to renew the rubber buying program.
MARKET NEWS
Kerala urges the Centre to restore the 20 per cent higher import duty on natural rubber in order to protect the interest of rubber cultivators. According to reports, Union Commerce Minister has convened a meeting on February 26, which would be attended by officials in the Commerce Ministry.
According to a note from the All India Rubber Industries Association, in its pre-budget representation, the rubber industry body has asked for reduction in customs duty on Natural Rubber to 7.5 per cent or Rs 10 a kg from the prevailing 20 per cent or Rs 20 a kg whichever is lower.
Rubber inventories in the warehouses monitored by SHFE rose 2.4 per cent to 102416 tonnes.
Crude rubber stockpiles held at Japanese warehouses rose 21 percent to 8,790 metric tons on Jan. 31, according to data from the Rubber Trade Association of Japan.
The Thai government will not renew its rubber-buying scheme, which is due to expire at the end of March, as prices have rebounded, according to the Deputy Agriculture Minister.
Kerala urges the Centre to restore the 20 per cent higher import duty on natural rubber in order to protect the interest of rubber cultivators. According to reports, Union Commerce Minister has convened a meeting on February 26, which would be attended by officials in the Commerce Ministry.
According to a note from the All India Rubber Industries Association, in its pre-budget representation, the rubber industry body has asked for reduction in customs duty on Natural Rubber to 7.5 per cent or Rs 10 a kg from the prevailing 20 per cent or Rs 20 a kg whichever is lower.
Rubber inventories in the warehouses monitored by SHFE rose 2.4 per cent to 102416 tonnes.
Crude rubber stockpiles held at Japanese warehouses rose 21 percent to 8,790 metric tons on Jan. 31, according to data from the Rubber Trade Association of Japan.
The Thai government will not renew its rubber-buying scheme, which is due to expire at the end of March, as prices have rebounded, according to the Deputy Agriculture Minister.
TECHNICAL VIEW
RUBBER Mar NMCE
Broad Trend: Bearish
Near Term: requires clearing the stiff obstacle placed at 15950-16050 ranges for further upsides.
TURNAROUND
| Resistances | LEVELS | Supports |
|
15850/15960 |
15960-15100 |
15600/15480 |
|
16050/16250 |
|
15200/15100 |
|
16400/16700 |
|
14900/14750 |
Source: Geojit Comtrade
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