MARKET COMMENTARY
Even as the broad trend stays weak, positive moves are currently being witnessed in the local natural rubber market. Limited arrivals to the market and improving buying interest kept RSS4 in the physical market afloat near more than a one month high. On NMCE too, prices were seen reversing the previous session losses on Wednesday with the most active June rubber futures gaining about one per cent. Sentiments were also buoyed by positive moves in the overseas market. In the meantime, natural rubber in the international market is seen reversing their initial gains on Thursday. AFET rubber futures declined while TOCOM rubber futures was off the two month high and SHFE rubber futures trimmed earlier gains weighed down by rising inventories in China and Japan. However, rising crude oil prices are likely to lent support.
MARKET NEWS
The Rubber Board, in co-operation with Automotive Tyre Manufacturers’ Association (ATMA) is organizing an awareness campaign for the small and marginal rubber growers to improve the quality of rubber and is scheduled to be conducted in the traditional rubber growing belt of Kerala, Tamil Nadu and Karnataka from 10 June 2013 to 19 July 2013.
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.
TECHNICAL VIEW
RUBBER June NMCE
Broad Trend:
Requires clearing and sustaining the congestion range of 16800-17050 levels with volumes to lessen the prevailing broad weakness. Near Term: As long as 16800-17050 region caps upside, higher level selling may be witnessed. Rise above the same could see prices testing 17250 or more.
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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