MARKET COMMENTARY
Feeble international rubber prices coupled with weak market fundamentals pounded natural rubber in the Indian market. RSS4 in the physical market retreated more than 2.5 percent from a four month high in the previous week to hit its lowest level since mid- March. Lacklustre buying interest and widening spread between futures and spot prices pressured prices to move south in the physical market. Also, with lean production phase to end soon in the major rubber growing areas in Kerala, arrivals may start trickling in.
In the overseas market, the week began with TOCOM rubber futures jumping over four per cent bolstered by a weaker yen. Reports that Bank of Japan would begin bond buying immediately pushed the Japanese currency to a four year low against the US dollar. Chinese market reopened today after the Tomb Sweeping day holidays and was seen trimming its initial losses. Despite a sharp turnabout in prices, trend is likely to stay bearish on high stockpiles and concerns over demand.
MARKET NEWS
Thailand will announce national readiness to be a rubber trade leader and centre in Asean and in the world at the Asean Rubber Day 2013 fair, set to be held in the country’s southern resort Phuket Province from April 10-12.
Rubber inventories in the warehouses monitored by SHFE declined, for the first time in nine weeks, by 1.1 percent to 117,504 tonnes last week.
According to Association of Natural Rubber Producing Countries, natural rubber output among the member countries increased 3.1 per cent to 10.6 million tonnes in 2012.
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.
TECHNICAL VIEW
RUBBER May NMCE
Broad Trend: Seen weak.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
16040/16200 |
16400-15900 |
15900-15800 |
|
16400/16550 |
15650/15500 |
|
|
16700/16860 |
15380/15260 |
Source: Geojit Comtrade
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