MARKET COMMENTARY
A mixed trend was witnessed in the local natural rubber market on Tuesday. RSS4 traded firm near its recent high of Rs166 a kg in the physical market bolstered by limited supplies. Latex (drc 60%) prices were seen rising too. Advances in the overseas market lent further support. However, on NMCE, the grade was seen retreating after its up run to a four week high, probably on profit booking. Restricted arrivals along with rising natural rubber prices in the overseas market are likely to keep sentiments on the greener side. Yet, tapping is likely to gather pace as the major rubber growing areas in Kerala has been receiving rains, which will aid tapping activity. Meanwhile, natural rubber in the overseas market is seen extending its positive momentum on Wednesday. TOCOM rubber futures resumed its move north following an initial dip as yen weakened.
MARKET NEWS
Rubber imports by China during April was at 230000 tonnes compared to 234044 tonnes imported during March.
Crude rubber stockpiles held at Japanese warehouses rose 0.7 percent to 16,094 metric tons on April 30 to a six year high, according to data from the Rubber Trade Association of Japan. Rubber inventories in the warehouses monitored by SHFE rose 0.2 per cent to 122137 tonnes.
Thailand, the world’s biggest rubber producer and exporter, is considering discontinuing measures curbing rubber exports upon their expiry on May 31 as they have failed to lift prices, a senior government official said on last Friday.
Thai govt. sees the nation’s natural rubber production rising by 5.2 per cent to 3.86 million tonnes in 2013 compared to 3.67 million tonnes produced last year.
The Thai government has no immediate plan to sell rubber from stockpiles as it will push prices of the commodity lower according to deputy farm minister Yuttapong Charasathien.
Crude rubber stockpiles held at Japanese warehouses rose 2 percent to 15,976 metric tons on April 20, according to data from the Rubber Trade Association of Japan.
Yokohama Rubber Co. announced plans to build a new plant to manufacture tires for trucks and buses in the United States and will have an annual production capacity of 1 million tires.
TECHNICAL VIEW
RUBBER June NMCE
Broad Trend: Requires clearing and sustaining the congestion range of 16800-17050 with volumes to lessen the prevailing broad weakness.
Near Term: For the day, pullbacks may be witnessed towards 16650-16700 levels but requires clearing 16800-17050 for further upsides.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
16800/16960 |
17050-16800-16400 |
16480-16360 |
|
17050/17250 |
|
16200/16050 |
|
17400/17560 |
|
15900/15800 |
Source: Geojit Comtrade
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