MARKET COMMENTARY
RSS4 in the Indian market traded rather flat on Thursday. In the physical market, prices were seen steadying near a one month high of Rs.167.50 a kg buoyed by limited arrivals to the market. Jaded moves in the overseas market weighed on the sentiments too. On NMCE, the most active June rubber futures was hovering near a four week high and seen varying in thin ranges. While there exist positive sentiments, investors are probably awaiting fresh leads for further directional moves. In the mean time, TOCOM rubber futures shoot up bolstered by weakening Japanese currency. The benchmark October rubber futures in the trendsetting TOCOM exchange jumped over four percent after Japanese yen slumped against the US dollar, breaching 100 a dollar mark for the first time in four years. However, undercurrents are likely to stay weak as market is seen in surplus and on burgeoning stockpiles amidst blurry global economic outlook.
MARKET NEWS
Natural rubber imports by India poised to drop for the first time in five years on declining car sales according to the Rubber Board.
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.
TECHNICAL VIEW
Broad Trend: Requires clearing and sustaining the congestion range of 16800-17050 levels with volumes to lessen the prevailing broad weakness.
Near Term: Sustained trades over 16800 could lift prices towards 16960 or more to 17050 but requires clearing the same with volumes to continue buying momentum. Else, it may succumb to higher level selling.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
16800/16960 |
17050-16800-16400 |
16620-16480 |
|
17050/17250 |
|
16360/16200 |
|
17400/17560 |
|
16050/15900 |
Source: Geojit Comtrade
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