MARKET COMMENTARY
Bouyed by rising natural rubber prices in the international market and lean production phase in Kerala, major rubber growing state, natural rubber extended gains in the Indian market. In the spot market, quotes for RSS4 grade rubber rose to a three and a half month high. On NMCE, the benchmark April rubber futures tested its highest level in about nine weeks. While the underlying market fundamentals are mixed, restricted supplies to the market coupled with rebound in the overseas market lifted the sentiments. However, sluggish auto sales and decline in consumption is likely to cap gains.
As the week’s session culminates, natural rubber is seen inching down after rising the previous session on simmering concerns over Cyprus which marred the overall market sentiments. TOCOM rubber futures slid on rising yen and decline in equities. SHFE and AFET rubber futures edged lower too.
MARKET NEWS
Leading tyre companies, including Apollo, Ceat and MRF, have cut prices by one to five per cent across all product categories.
The Automotive Tyre Manufacturers Association, the apex body for tyre makers, in a communication to the Rubber Board has said that limited quantities which are available with the dealers are not being supplemented by arrivals from growers, resulting in interruption of smooth flow of the commodity to the end-consumers.
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.
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. Unanticipated fall below 16400 could take price lower to 16200 and major weakness will be seen below the same.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
16850/16950 |
17050-16700-16200 |
16500-16400 |
|
17050/17200 |
|
16250/16140 |
|
17400/17650 |
|
16040/15900 |
Source: Geojit Comtrade
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