MARKET COMMENTARY
Natural rubber slumped in the international market on Thursday on weak manufacturing data from China. The Chinese HSBC flash manufacturing PMI fell to a seven month low, raising worries over growth prospects in the world’s second largest economy. TOCOM SHFE as well as AFET rubber futures slumped about three per cent. Decline in other industrial commodities and crude oil prices weighed on. Overall market sentiments were dampened after US Federal Reserve Chairman’s comments over the central bank’s bond buying program. Deep decline in the overseas market is likely to ponder over the domestic natural rubber prices too. Last day, RSS4 in the physical market had risen to Rs.173 a kg, its strongest level since late November 2012. On NMCE, the grade gained over one per cent with the most active June rubber futures testing its highest level since mid-March this year.
MARKET NEWS
Indonesian rubber growers have asked government to coordinate action to keep prices at $3.50 a kilogram, according to Asril Sutan Amir, advisor to Rubber Association of Indonesia.
Ivory Coast’s natural rubber exports totalled 100,573 tonnes by end-April since the start of the year, up more than 17 percent from the same period last year, provisional port data showed on Wednesday.
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.
TECHNICAL VIEW
RUBBER June NMCE Even as some more upsides are in store with the upside break of the consolidation range, corrective moves probably to 17000-16900 ranges may be seen before resuming to rise. However, such moves extending beyond 16700 will induce weakness.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
17400/17560 |
17500-16700 |
17020/16900 |
|
17840/18060 |
|
16800-16700 |
|
18300/18560 |
|
16580/16480 |
Source: Geojit Comtrade
Download this report (full content – PDF file) bellow:
