MARKET COMMENTARY
Sentiments were on the greener side in the domestic and overseas natural rubber market on Tuesday. On NMCE, the benchmark April rubber futures hit the highest level in a week buoyed by gains in the overseas market and prospects of import duty hike. Natural rubber prices had gained last day after Thailand proposed to extend exports cuts to arrest slump in prices. However, gains were limited owing to renewed worries over European debt crisis and build-up in natural rubber stockpiles in China. On Wednesday, while TOCOM exchange was closed on account of Vernal Equinox day, SHFE rubber futures were seen stretching previous session gains. In the Indian market, commodity is likely to receive support from limited supplies and gains in overseas market, however, advances may be limited on falling consumption, higher imports and sluggish auto sales.
MARKET NEWS
Thailand, Indonesia and Malaysia should focus more on managing rubber supplies from plantations to support prices, rather than export cuts says Daud Husni Bastari, chairman of Rubber Association of Indonesia.
The secretary-general of the International Rubber Study Group predicts strong global demand for tires through the coming decade.
Thailand to propose extending a reduction in exports from top suppliers for a further year to curb a slump in prices, according to Deputy 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.
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.
TECHNICAL VIEW
RUBBER Apr NMCE
Broad Trend: Weak
Near Term: As long as 16850-17050 region caps upside, higher level selling may be witnessed.
For the day, while there exist a mild positive bias, requires clearing 16700 for further upsides. Else, expect a turn lower possibly towards 16500-16400 levels
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
16650-16700 |
17050-16100 |
16400/16250 |
|
16850/16950 |
|
16140/16040 |
|
17050/17200 |
|
15900/15750 |
Source: Geojit Comtrade
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