MARKET COMMENTARY
Despite steep declines in the overseas market, natural rubber in the Indian market traded firm. On Tuesday, RSS4 managed to sustain near the four month high in the spot market in a lacklustre trade as arrivals to the market remained circumscribed. In futures segment meanwhile, the most active April rubber futures on NMCE edged up. However, prices did remain under pressure from bearishness in the overseas market amidst weak fundamentals.
TOCOM rubber futures took a breather from a four day fall and inched up on Wednesday supported by a weaker yen. SHFE rubber futures were seen inching up too. Positive Chinese services PMI and robust auto sales and factory orders from the US probably improved sentiments. However, the overall trend stayed bearish on concerns over demand from the top consumer China.
MARKET NEWS
Crude rubber stockpiles held at Japanese warehouses rose 17.9 percent to 14,802 metric tons on March 20, according to data from the Rubber Trade Association of Japan.
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.
TECHNICAL VIEW
RUBBER Apr NMCE
Broad Trend: Seen weak.
Near Term: Even as prices penetrated 16400 in the previous session, failure to clear the level on a firm basis could provide cushion to witness short covering rallies towards 16700-16800 regions. However, splinter past 16400 with streaming volumes could target levels of 16200.
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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