MARKET COMMENTARY
Natural rubber prices in the Indian market ruled steady on Wednesday awaiting fresh signals for further directional moves. Undercurrents stayed weak in the market, restricting gains in the commodity. Decline in car sales, surging imports and muted demand battered overall market sentiments. However, decline in production, limited arrivals to the market and advances in natural rubber prices in the overseas market are likely to lend support. TOCOM rubber futures hit a two week high on Thursday bolstered by a weaker yen. The Japanese currency was just shy of hitting 100 yen a dollar mark earlier today. Traders are also awaiting cues from Asean Rubber Day that is underway in Phuket, Thailand. Top three produces, Thailand, Indonesia and Malaysia is anticipated to discuss and announce measures to prop up natural rubber market. SHFE rubber futures ruled steady while AFET rubber futures are seen stretching previous session gains.
MARKET NEWS
Natural rubber imports surged to a record high to hit 216642 tonnes in FY’13. Consumption and production showed only a marginal rise during the same period, at 971980 and 912200 tonnes respectively.
Natural rubber production and consumption declines 6.0 and 4.1 per cent respectively in March.
According to Vietnam Rubber association, Vietnam’s production may climb 4.2% to 900,000 tons this year while exports may total 1m tons, unchanged vs last year.
Thailand, the biggest supplier of rubber, plans to increase domestic demand to bolster local prices says deputy farm minister Yuttapong Charasathien.
Indian car sales register its first annual decline in FY’13, tumbling seven per cent on rising interest rates, fuel costs and gloomy macro economic outlook.
Thailand will set up a rubber-processing industrial estate in the southern province of Songkhla to be fully engaged in producing and marketing in parallel to a similar rubber park in Malaysia, says Thai deputy farm minister Yuttapong Charasathien.
Natural rubber imports by China rose 53.3 per cent to 230,000 metric tons in March on month-on-month basis.
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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