MARKET COMMENTARY
Natural rubber prices seem to have lost direction the in the local market. In the physical market quotes for RSS4 continued to rule flat near Rs.171 a kg while on NMCE, range bound moves were being witnessed amidst decline in volumes. Investors and traders were probably waiting for fresh triggers to for further directional moves. In the meantime, according to media reports the Commerce Ministry has yet again sought a hike in import duty on natural rubber and urged the Finance Ministry to act fast on the same. However, the Finance Ministry is yet to decide upon the duty hike.
In the international market natural rubber traded mostly steady with mild negative bias on Wednesday. TOCOM rubber futures were swinging between positive and negative turfs as investors were probably awaiting outcome of key central bank events. Decline in crude oil prices weighed on the sentiments too.
MARKET NEWS
The Commerce Department wants the Finance Ministry to act fast on its recommendation for an increase in import duty on rubber to help domestic farmers deal with falling prices.
The three day IRSG’s World Rubber Summit starting May 21 is underway in Singapore. The growth in global demand for natural and synthetic rubber will be slower than previously expected in 2013 amid concerns about the health of the world economy says the secretary-general of the International Rubber Study Group.
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.
TECHNICAL VIEW
RUBBER June NMCE
Prices have been varying inside 16700-17140 ranges and require a breakout from either the sides for further directional moves.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
17140-17250 |
17250-16700 |
16900-16850 |
|
17400/17560 |
|
16700/16580 |
|
17840/18000 |
|
16480/16360 |
Source: Geojit Comtrade
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