MARKET COMMENTARY
Mixed sentiments were being witnessed in the local natural rubber market on Tuesday. In the futures segment, RSS4 ruled flat while in the spot market, prices were seen inching higher. The grade rose to fresh five and a half month high driven by limited supplies to the market amidst improving buying interest from the tyre sector. However, such moves were not reflected on NMCE and investors chose not to chase the commodity that is currently hovering near four week high. Retreat in natural rubber prices in the overseas market after the recent up run weighed on. On Wednesday, prices were seen stretching the previous session losses on TOCOM and SHFE. Rebound in Japanese yen and retreat in crude oil prices weighed on amidst bulging stockpiles in China. Meanwhile, AFET rubber futures were seen inching up after the previous session fall.
MARKET NEWS
Crude rubber stockpiles held at Japanese warehouses fell 1.8 percent to 15,811 metric tons on May 10, according to data from the Rubber Trade Association of Japan.
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.
TECHNICAL VIEW
RUBBER June NMCE
While prices have been moving sideways, as long as 16800-16700 ranges remain undisturbed, chances of a rise to 17250 or more looks wide open.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
17120-17250 |
17250-16800-16400 |
16800-16700 |
|
17400/17560 |
|
16580-16480 |
|
17650/17840 |
|
16360/16200 |
Source: Geojit Comtrade
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