MARKET COMMENTARY
Sentiments in the local natural rubber market stayed mixed on Wednesday. In the physical market prices continued to rule near Rs.171 a kg buoyed by limited arrival in the market while on NMCE, directionless moves were witnessed as buying interest waned off at higher levels. Near month May rubber futures ended one per cent lower as it expired while the most active June rubber futures culminated the session in red. Weakness being witnessed in the international market weighed on the sentiments too. TOCOM rubber futures are seen extending earlier losses and hit one week low on Thursday. SHFE rubber futures too moved in tandem with TOCOM. However, AFET rubber futures were seen rising probably on supply concerns owing to rains. According to Thai Met department, rainy season in the country is to begin by mid-May. Meanwhile, rubber inventories in Qingdao bonded area eased from the record highs.
MARKET NEWS
Thai Agriculture and Agricultural Cooperatives agency will meet with private sector soon to work on details of plan to stabilize rubber prices and the Govt targets 2013-2014 rubber prices at 110 baht/kg.
According to the Indian Metrological Department, Southwest monsoons are likely to hit Kerala by June 03.
Rubber inventories in Qingdao bonded area slips from record high of 371100 tonnes to 363300 on April 26.
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.
Natural rubber imports by India poised to drop for the first time in five years on declining car sales according to the Rubber Board.
TECHNICAL VIEW
RUBBER June NMCE As long as 16800 is held downside, chances of a rise towards 17250 remains wide open. However, slippage past 16800 may see lower correction to 16700 or more to 16580.
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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