MARKET COMMENTARY
Natural rubber prices continue to edge higher in the Indian markets buoyed by restricted supplies amidst improving demand. With markets in the midst of a lean production phase, anticipation of further rise in prices is probably prompting the growers to hold back their produce. RSS4 in the physical market was quoted at its highest in about two weeks on Wednesday and a similar movement was witnessed on NMCE too. A rebound in natural rubber prices in the international market lent further support. On Thursday, natural rubber prices are seen stretching gains in the overseas market. TOCOM rubber futures reopened today after Vernal Equinox day holiday, jumping nearly four per cent bolstered by comments from the US Fed Chairman that the central bank will continue with the stimulus measures. Also, supporting the sentiments are the proposed export cuts by Thailand and upbeat manufacturing data from China.
MARKET NEWS
Chinese HSBC Flash manufacturing PMI expands more than anticipated to 51.7 in March against 50.4 in February.
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.
TECHNICAL VIEW
RUBBER Apr NMCE
Broad Trend: Seen weak, yet successful attempts to clear 17050 ranges could lessen the weakness.
Near Term: The prevailing chart pattern suggests that there exist more room for further upsides possibly towards 16850/17050 if it clears and sustain 16700. Unsuccessful attempts to clear 16700 may call for a lower correction towards 16400 or more.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
16650-16700 |
17050-16700-16400 |
16500-16400 |
|
16850/16950 |
|
16250/16140 |
|
17050/17200 |
|
16040/15900 |
Source: Geojit Comtrade
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