MARKET COMMENTARY
A recovery in natural rubber prices in the overseas market towards the close of the week coupled with limited supplies kept the positive sentiments in the local market afloat. RSS4 culminated the previous week’s session on a positive note. In the physical market, prices clung near five and a half month high while on NMCE, the benchmark June rubber futures posted gains for the fourth straight week. Amidst improving buying interest, investors are now looking at the advancement of the Southwest monsoons, which IMD has forecast to arrive in Kerala by June 03 and progress in rain guarding in the major rubber growing areas.
On Monday, natural rubber prices in the international market are on the greener turf. TOCOM rubber future stretched the previous session gains supported by weak yen and as rubber inventories in the Japanese as well as Chinese warehouses dipped.
MARKET NEWS
Rubber inventories in the warehouses monitored by SHFE dipped 0.8 per cent to 120160 tonnes.
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.
TECHNICAL VIEW
RUBBER June NMCE
The buying momentum seen in the previous session is likely to continue to 17250 initially and sustained trades over the same may call for 17500 or more. While weakness is seen only below 16700, fall below 16950 may see some corrective moves.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
17250/17400 |
17250-16700 |
16950-16850 |
|
17560/17840 |
|
16700/16580 |
|
18000/18200 |
|
16480/16360 |
Source: Geojit Comtrade
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