MARKET COMMENTARY
Emotions were mixed in the local natural rubber market on Tuesday. While latex (drc 60%) prices continued to inch lower, RSS4 was seen reversing initial losses in the spot as well as in the futures market even as trades were lacklustre. NMCE rubber futures rose after snapping a three day decline and in the physical market the grade was quoted around Rs.170 a kg. A rebound witnessed in the overseas market the other day after the slump lent support. However, on Wednesday, sentiments are mixed with AFET rubber futures paring initial gains while TOCOM extended the previous session gains. SHFE rubber futures were seen rising from the three week low. Upbeat data from US and weakening yen bolstered prices.
MARKET NEWS
International Rubber Study Group announced a Sustainable Natural Rubber Action Plan with the key objective to promote the use of voluntary sustainable natural rubber standards throughout the global rubber economy.
Myanmar exported about 9000 tonnes of raw rubber during the first four month of 2013.
TOCOM May rubber futures expired on Monday with 395 lots being delivered compared to 503 lots delivered the previous month.
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
Pullbacks witnessed in the previous session may be seen stretching towards 17000 regions followed by a turn lower. However, a direct rise above 17140 may see prices revisiting the recent highs or even more, lessening the prevailing weakness.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
16850/16950 |
17140-16400 |
16650-16580 |
|
17060-17140 |
|
16480/16360 |
|
17300/17400 |
|
16250/16140 |
Source: Geojit Comtrade
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