MARKET COMMENTARY
For the past few sessions, choppy trades are being witnessed on NMCE, whereas spot prices continue to rule mostly steady near Rs.163-162 a kg awaiting fresh cues for further direction. Even as the broad trend stays weak, limited supplies to the market and increased prospects of import duty hike are lending lower level support to prices. With market in the midst of lean production phase, anticipation of rise in prices is perhaps prompting growers to hold back their produce. Nevertheless, with the recent plunge, natural rubber prices in the overseas market, especially the Malaysian SMR20 and Indonesian SIR20 are being quoted way below RSS4 in the Indian markets, opening room for higher imports. Meanwhile, on Tuesday, natural rubber in the major TOCOM and SHFE is seen rising following the previous session plunge. Thailand’s plans to extend the rubber shipment cuts for another year and a rebound in equities and other industrial commodities improved the sentiments though, high inventories in China weighed on.
MARKET NEWS Farm Minister Yuttapong Charasathien. Thailand, Indonesia and Malaysia to meet in Phuket on April 10-12 to discuss the same.
Europe braced for renewed turmoil as outrage in Cyprus over an unprecedented levy on bank deposits threatened to derail the nation’s bailout.
Rubber inventories in the warehouses monitored by SHFE rise 5.9 per cent to 113803 tonnes.
Import duty on natural rubber to be increased soon in a bid to support the local industry and a notification giving effect to the rise will be issued soon, Commerce and Industry Minister Anand Sharma said on Thursday.
Chinese authorities on Tuesday, last week ordered local warehouses in Qingdao, Shandong province, to clear part of their rubber stocks within 10 days due to safety concerns.
Thailand’s Rubber Estate Organization spent 19.4b baht to buy 194,028 tons of rubber sheet from farmer cooperatives, said Pakdihan Himathongkam, a deputy government spokesman, without giving a time frame.
TECHNICAL VIEW
RUBBER Apr NMCE
Broad Trend: Weak
Near Term: As long as 16850-17050 region caps upside, higher level selling may be witnessed and slippage past 16100 would induce further weakness.
For the day, prices may inch up towards 16500-16650, if holds the downside side support of 16250.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
16500/16700 |
17050-16100 |
16200-16140 |
|
16850/16950 |
|
16040/15900 |
|
17050/17200 |
|
15750/15600 |
Source: Geojit Comtrade
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