MARKET COMMENTARY
RSS4 in the Indian market bounced back from its lowest levels since mid-March on Monday. In the spot market, the grade was quoted around Rs.164.50 kg while on NMCE, the most active May rubber futures posted nearly 1.5 percent rise on short covering. A sharp U-turn in TOCOM rubber futures bolstered the sentiments. Yet, widening gap between natural rubber prices in the local and international market and muted demand kept gains under leash. In the meantime, TOCOM rubber futures are seen continuing the up run on Tuesday. After posting its biggest one day rise in two years, benchmark September rubber futures traced up over two per cent on feeble yen, rising equities and other commodities. Yen carried on gliding down against the US dollar on Bank of Japan’s aggressive monetary policy moves to shore up the ailing economy. SHFE and AFET rubber futures jumped up as well.
MARKET NEWS
The rubber industry in Indonesia, the world’s second-biggest rubber producer, will propose a review of the supply management that it has implemented in the past six months to cut overseas supply, along with Thailand and Malaysia in the ITRC meeting starting tomorrow in Thailand .
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
TECHNICAL VIEW
RUBBER May NMCE
Broad Trend: Seen weak.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
16400/16550 |
16400-15900 |
16200/16040 |
|
16700/16860 |
|
15900-15800 |
|
16950/17050 |
|
15650/15500 |
Source: Geojit Comtrade
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