MARKET COMMENTARY
Up run in natural rubber prices seems to be loosing steam in the local market. NMCE rubber futures declined, shedding nearly one per cent on Thursday after consolidating near the four week highs while in the physical market RSS4 managed to cling near its strongest level in the five and a half months. Yet, the commodity remained under pressure from declining prices in the overseas market and lack of buying interest at higher levels. Latex (drc 60%) prices steadied too.
As the week’s session culminates, TOCOM rubber futures are probably on its course to post weekly losses as rebound in the Japanese currency weighed on. Comments from the US Fed officials over possible rollback in stimulus hurt sentiments too. Meanwhile, SHFE rubber futures took a breather from the recent fall and inched up about one per cent.
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
With the breach of 16800 in the previous session, it seems some more corrective moves are in store possibly to 16580 or more to 16400 before bouncing back. However a direct rise above 17040 could lift prices to 17250 but requires clearing the same for further upsides.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
16850-16950 |
17250-16800-16400 |
16700/16580 |
|
17040/17250 |
|
16480/16360 |
|
17400/17560 |
|
16200/16000 |
Source: Geojit Comtrade
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