MARKET COMMENTARY
- Pressured by weak cues from the domestic as well as international market, RSS4 slipped to its weakest since mid-September in the physical market. Rising natural rubber imports amidst increasing domestic production continue to depress prices. Also, the climatic condition have been mostly favourable for tapping and output is likely to rise in coming days as the market has entered the peak production season that starts from October. The benchmark November rubber futures in NMCE tested its lowest level in five weeks, extending its losses into the fifth consecutive session.
- Snapping a four day fall, TOCOM rubber futures were seen inching up on Tuesday tracking shares and weak yen. However, gains are likely to remain capped on worries over demand from China. SHFE rubber futures edged up too; however, AFET rubber futures were seen swinging between positive and negative territories.
MARKET NEWS
- According to Indian Meteorological Department, North-East monsoons are likely to commence over peninsular India by Friday. ⊳Natural rubber imports by China remain unchanged on month on month basis. The country imported 210000 tonnes of natural rubber in September. However, on year on year basis, the imports showed a decline of 12.5 per cent.
- According to Rubber Board, natural rubber production in India rose 2.2 per cent in September to 82000 tonnes while consumption increased by 8.9 per cent to 81500 on YOY basis. Imports surged 16 per cent to 14779 tonnes.
- Natural rubber production in Malaysia dropped 14.9 per cent in August to 72428 tonnes on MoM basis. A decline of 22.4 per cent in exports was recorded during the same period on a year on year basis.
- The International Rubber Research and Development Board (IRRDB) is conducting its Annual Meetings 2012 and 10th International Rubber Conference at Kovalam, Kerala from 29 to 31 October 2012.
TECHNICAL VIEW
RUBBER Nov NMCE
Even as the trend stays weak, the bounce back seen after taking support at 17900 in the previous session is likely to continue initially towards 18300 or more towards 18560 followed by a turn lower. However, successful attempts to sustain above the same are likely to stretch the momentum towards 18800 regions. Slippage past 17900 may induce further weakness.
Source: Geojit Comtrade
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