MARKET COMMENTARY
NMCE rubber futures rose to a nine week high, posting a weekly gain of three percent while in the spot market, quotes for RSS4 was hovering near its strongest level since late November in the week gone by. Despite a weak closing in the overseas market, limited availability in the local market and improving buying interest pushed prices higher. However, with the financial year-end approaching and consecutive holidays later this week, market activities could remain lethargic.
As the week begins, natural rubber in the overseas market opened with a positive bias on abating worries over Cyprus bailout. TOCOM rubber futures rose about one per cent earlier today supported by a weaker yen and rising crude oil prices. Still, rising inventories in China is likely to restrict gains.
MARKET NEWS
The Malaysian Rubber Board is planning to launch a second edition of strategies for the local rubber industry within the next few months in view of the new challenges and prolonged issues in the thriving industry, according to director-general Datuk Dr Salmiah Ahmad.
National Multi Commodity Exchange registered a 405 per cent rise in rubber delivery at 3,087 tonnes this month against 763 tonnes in March 2012.
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.
TECHNICAL VIEW
RUBBER Apr NMCE
Broad Trend: Seen weak, yet successful attempts to clear 17050 ranges could lessen the weakness.
Near Term: While the stiff resistance at 16850 has been breached, prices are currently inside the congestion resistance range of 16850- 17050, which if cleared, could see a rise to 17200-17400 or more. Unanticipated fall below 16650 may see lower correction to 16500- 16400.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
16950/17050 |
17050-16200 |
16770/16650 |
|
17200/17400 |
|
16500-16400 |
|
17650/17800 |
|
16250/16140 |
Source: Geojit Comtrade
Download this report (full content – PDF file) bellow:
