MARKET COMMENTARY
Sentiments were mixed in the Indian natural rubber market on Tuesday. In the physical market RSS4 firmed up while on the futures platform, the grade reversed the initial advances and culminated the session in red. RSS4 was off three week low buoyed by limited arrivals and advances in the overseas market. Yet, the undercurrents stayed on the weaker side, restricting gains. As the lean production phase is to end soon, production will be picking up pace in the coming days which is likely to add pressure on prices amidst weak economic cues and muted demand.
Natural rubber is seen stretching gains in the overseas market on Wednesday with Asean Rubber Day 2013 fair starting today in Phuket, Thailand. The top three natural rubber producers, Thailand, Indonesia and Malaysia are expected to discuss upon schemes to support natural rubber market in the meeting which concludes on April 12. TOCOM rubber futures are seen rising, paring initial losses.
MARKET NEWS
Natural rubber imports by China rose 53.3 per cent to 230,000 metric tons in March on month-on-month basis.
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.
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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