MARKET COMMENTARY
Sentiments stayed weak in the Indian as well as international market on Monday. In the local market, as monsoon advances, natural rubber prices are seen falling on waning buying interest and bearish moves in the international market. In the physical market, RSS4 retreated from five and a half month highs and on the futures platform the grade succumbed to higher level selling. Weak overseas cues weighed on the overall sentiments. In the meantime, on Tuesday, natural rubber prices traded mixed in the overseas market. TOCOM rubber futures were swinging between positive and negative territories and so were AFET rubber futures. SHFE continued its downtrend. Worries over demand from China continued to hurt prices even as retreat in yen and rebound in equities lent support.
MARKET NEWS
TOCOM May rubber futures expired on Monday with 395 lots being delivered compared to 503 lots delivered the previous month.
Rubber inventories in the warehouses monitored by SHFE declined 4.4 per cent to 114932 tonnes.
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.
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.
TECHNICAL VIEW
RUBBER June NMCE
With prices breaching the support at 16700, there is considerable weakness, yet pullbacks to 16850 or more to 16950 may be seen before resuming downtrend. Alternatively, a direct rise above 17140 with considerable volume may see prices testing the recent high or more.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
16850/16950 |
17140-16400 |
16580/16480 |
|
17060-17140 |
|
16360/16250 |
|
17300/17400 |
|
16140/16000 |
Source: Geojit Comtrade
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