MARKET COMMENTARY
Sentiments weakened in the local natural rubber market on Thursday. Natural rubber prices were under pressure from steep declines witnessed in the overseas market on weak manufacturing data from China and comments from the Federal Reserve Chairman on monetary stimulus in US. NMCE rubber futures retreated from two and a half month highs tested in the other day, shedding over two per cent. Prices softened in the physical market too. RSS4 dipped to Rs.172 a kg while latex (drc 60%) ruled flat. In the international market, meanwhile TOCOM and SHFE futures are seen stretching the previous session losses on Friday on weak cues from China. Also, the top natural rubber producer Thailand was not to extend the restriction on exports when it expires on May 31.
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
Decline seen in the previous session as induce some weakness. As long as the recent swing low of 16700 holds downside, chances of a bounce back are wide open. However, slippage past the same may see weakness extending towards 16500-16400 ranges.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
17060-17140 |
17300-16700-16400 |
16800-16700 |
|
17300/17400 |
|
16580/16480 |
|
17560/17840 |
|
16360/16140 |
Source: Geojit Comtrade
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