MARKET COMMENTARY
⊳ Sentiments were mixed in the domestic natural rubber market on Wednesday. In the physical market, prices traded firm near its highest level in about six weeks while NMCE rubber futures were seen reversing initial gains by the afternoon session. The benchmark April rubber futures were seen retreating after testing a one week high to culminate the session 0.5 per cent down. However, prospects of import duty hike and rebound in overseas market continue to offer firm support to the commodity.
⊳ On Thursday, TOCOM rubber futures were seen extending the bounce back from its weakest level in over two month to hit one week high tracking gains in equities and other commodities following an upbeat employment data from the US. Yet, gains remained capped as investors awaited the outcome of the European Central Bank’s policy announcement later in the evening.
MARKET NEWS
⊳ According to ANRPC, natural rubber imports by China jumped 17.6 per cent to 482000 tonnes in the first two months. The country’s consumption is seen rising nine per cent this year to 4.18 million tonnes according to the organisation.
⊳ Crude rubber stockpiles held at Japanese warehouses rose 8.2 percent to 10,942 metric tons on Feb. 20, according to data from the Rubber Trade Association of Japan.
⊳ Kerala Chief Minister Oommen Chandy pressed for increase in import duty on rubber to protect the interest of domestic players during his meeting with Commerce and Industry Minister Anand Sharma.
⊳ The Commerce Ministry has decided to introduce a Modified Price Stabilisation Fund (MPSF) scheme for the plantation sector covering tea, coffee, rubber, tobacco and cardamom.
⊳ Minister for Commerce and Industry Anand Sharma said on Monday that there was a need to revise import duty on rubber and recommendations on the same has been sent to the Revenue Dept.
⊳ AIRIA expresses concern on the move to increase import duty on natural rubber while tyre industry objects to the Centre’s move to raise the import duty on natural rubber from Rs 20 per kg to Rs 34 per kg.
TECHNICAL VIEW
RUBBER Apr NMCE
Broad Trend: Bearish
Near Term: Requires clearing 16380-16500 ranges to continue the present buying momentum. Unsuccessful moves to breach the same may call for a lower correction possibly towards 16130/15900 or more.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
16380/16500 |
16380-15600 |
16130/16040 |
|
16650/16740 |
|
15900/15750 |
|
16850/16950 |
|
15600/15500 |
Source: Geojit Comtrade
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