MARKET COMMENTARY
Natural rubber prices stayed range bound in the local market on Thursday awaiting fresh triggers for further directional moves. NMCE rubber futures and quotes for RSS4 in the physical market varied in narrow ranges with a negative bias. The broad underlying trend remained bearish on hostile macro-economic cues coupled with muted demand from the major rubber consuming sector. However, limited natural rubber production and arrivals are restricting steep declines, on the other hand, tapping activity will pick up soon in the major rubber growing areas in Kerala after the lean production phase which is likely to keep gains under check. In the mean time, sentiments are mixed in the overseas natural rubber market. TOCOM rubber futures swung between positive and negative turf while SHFE rubber futures dropped. Japanese yen pausing following its recent plunge and decline in crude oil prices weighed on prices.
MARKET NEWS
Thailand and Malaysia will collaborate in setting up rubber industry zones on both sides of the common border in order to create jobs and income for citizens of both nations.
Thailand targets to lower shipments of rubber by 10% through end of May to help support prices, says Thai deputy farm minister Yuttapong Charasathien.
Crude rubber stockpiles held at Japanese warehouses rose 6.7 percent to 15,799 metric tons on March 31, according to data from the Rubber Trade Association of Japan.
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.
TECHNICAL VIEW
RUBBER May NMCE
Broad Trend: Seen weak.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
16400/16550 |
16400-15900 |
16200-16100 |
|
16700/16860 |
|
16040/15900 |
|
16950/17050 |
|
5800/15650 |
Source: Geojit Comtrade
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