[Geojit Comtrade] Daily report on Natural Rubber: November 2, 2012

MARKET COMMENTARY

NMCE rubber futures continued to move in tight ranges with a negative bias on Thursday while in the spot market RSS4 traded flat, around its two month low. Market lost direction as there were no major triggers to incite fresh sentiments in the market. Higher imports and subdued demand from the tyre sector amidst the peak production period kept lid on gains. Yet, heavy rains in the major plantation areas in Kerala and ebbing difference between local and overseas prices lent support.
As the week’s session culminates, natural rubber prices in the international market are seen retreating after rising in the previous session. TOCOM rubber futures edged lower as investors turned cautious ahead of the US non farm payrolls data slated to release later today. However, upbeat economic indicators from US and Asia cushioned the fall.

MARKET NEWS

According to Rubber Trade Association of Japan, crude rubber inventories at the Japanese ports increased to 6244 tonnes as of October 20 after falling to its two-year low in early October.
Official Chinese manufacturing PMI rose to 50.2 in October from 49.8 in September probably indicating that the world’s second largest economy is perking up.
Ivory Coast’s natural rubber exports increased 15 per cent to 199277 tonnes in Jan-Sep period on YoY basis.
Tocom October rubber futures expired with only 67 lots being delivered compared to 277 lots delivered in the previous month.
According to Vietnam’s General Statistics Office, the country’s rubber exports are anticipated to rise 61 per cent to 100000 this month.
Chinese Academy of Tropical Agricultural Sciences says China plans 14000ha of new rubber planting and replant 10000ha of old rubber trees in next five years.
According to ANRPC, rubber production among its member countries may increase to its highest level in at least nine years to 11.1 million metric tonnes in 2013.

TECHNICAL VIEW

RUBBER Nov NMCE

Prices continued to trade sideways with a negative bias in the previous session too. Now, as long as 17570 holds downside, attempts will be seen to edge higher towards 17960 levels but requires sustaining above the same to extend such move towards 18100/18300 regions. However, slippage past 17570 may see prices testing 17400/17240 or more.

Source: Geojit Comtrade

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