MARKET COMMENTARY
Natural rubber prices are bound south in the overseas market on burgeoning stockpiles in China and weak economic cues. On Tuesday, TOCOM rubber prices slumped to a four month low, breaking below the 200DMA after weak manufacturing data from the US and China raised worries over demand. Inventories in Qingdao region in China were reported at an all-time high while in the SHFE monitored warehouses stock build-up rose to a three year high. In the meantime, the trend was mixed in the Indian market on Monday. NMCE rubber futures fell over 1.5 per cent while losses were limited in the physical market as supplies were almost lull. However, rising imports and weak auto sales in the country added further pressure on prices amid weak overseas cues. Moreover, lean production phase in the major rubber growing regions in Kerala is to end soon and could intensify the prevailing stress on prices.
MARKET NEWS
Thailand’s Deputy Farm Minister says the govt. to decide upon extension of domestic rubber purchase program after monitoring the production rates when tapping resumes after the ‘wintering’ season.
Indonesia’s Trade Ministry to meet stakeholders and association on April 5 to discuss on fall in natural rubber prices and review exports.
Rubber inventories in the warehouses monitored by SHFE rose 1.5 per cent to 117,696 tonnes last week.
Arunachal Pradesh govt allots Rs.10 crore to cultivate rubber in the state.
Thailand’s February rubber exports gain 0.2% on-year to 288,333 tons according to Ministry of Commerce. ⊳The Thai cabinet on Tuesday approved an injection of US$3.3 million (Bt109.89 million) into the tripartite rubber consortium for rubber price stability in the global market.
Tyre manufacturing major Michelin expects to commence production at its new facility near Chennai by mid-2013.
China’s Rubber Industry Association sees synthetic and natural rubber consumption rising 7.79 per cent and 7.25 per cent respectively in 2013
TECHNICAL VIEW
RUBBER Apr NMCE
Broad Trend: Seen weak.
Near Term: While prices were held near considerably strong support of 16400 in the previous session, for the day, a fall below the same is likely to induce weakness towards 16200 or more. However, 16400/16200 if held may call for a pullback but such moves could be short-lived.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
16580/16770 |
17050-16400-16200 |
16400/16250 |
|
16860/16950 |
|
16140/16050 |
|
17050/17250 |
|
15900/15700 |
Source: Geojit Comtrade
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