MARKET COMMENTARY
Limited arrivals to the market amidst improving demand kept afloat RSS4 in the physical market at its five and a half month highs. On Monday, quotes were hovering near Rs.170 a kg while, on NMCE the grade paused after the recent rally. The most active June rubber futures eased from the four week highs shedding about half a per cent and so was the near month May futures, which expires tomorrow. Even as the sentiments stayed on the greener side, retreat in natural rubber prices in the trend setting TOCOM and SHFE exchanges after it’s recent up run weighed on. TOCOM rubber futures retreated from the two month highs, snapping a five day rally on Tuesday. The benchmark October rubber futures lost more than 1.5 per cent pressurized by a rebound in Japanese yen. SHFE rubber futures stretched losses too.
MARKET NEWS
According to Malaysia’s Statistics Department, the country’s natural rubber (NR) output in March slipped 7.5 per cent to 70,304 tonnes but was 4.3 per cent higher when compared with the same month last year. ⊳According to the Rubber Board, India’s natural rubber imports in April fell 38 percent on year to 10,871 tonnes as tyre makers trimmed overseas purchases due to a sharp drop in local prices. Consumption rose 3.8 percent to 82000 tonnes while production showed a marginal rise by 0.6 percent to 53000 tonnes on YoY basis.
Rubber inventories in the warehouses monitored by SHFE dropped 0.9 per cent 121090 tonnes previous week.
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.
TECHNICAL VIEW
RUBBER June NMCE
Even as it seems there is some more upside in store at least to 17250, corrective moves are seen towards 16700 or more to 16580. However, such downsides stretching beyond 16400 may reintroduce weakness.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
17120-17250 |
17250-16700-16400 |
16800-16700 |
|
17400/17560 |
|
16580-16480 |
|
17650/17840 |
|
16360/16200 |
Source: Geojit Comtrade
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