MARKET COMMENTARY
Decline in equities and other industrial commodities coupled with a strong yen dragged down TOCOM rubber futures to three week low on Thursday. Uncertainty over global economic growth and worries over demand from the top consumer China weighed on the sentiments too. The benchmark November rubber futures on TOCOM skid three per cent. SHFE and AFET rubber futures were bound south too. In the local market, meanwhile, RSS4 on NMCE was under hammer on Wednesday and the most active June rubber futures slipped over one per cent to hit its weakest level in around three week. In the physical market, mood was subdued and the grade managed to stay near Rs.170 a kg in lacklusture trades. Limited arrival to the market probably restricted sharp decline in prices, yet steep plunges in the overseas market is likely to ponder over the sentiments.
MARKET NEWS
Indian Meteorological Department expects Southwest Monsoon to arrive in Kerala by 3rd June with a possible error margin on four days.
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.
TECHNICAL VIEW
RUBBER June NMCE
Weakness prevails and slippage past the immediate support of 16580 may see selling continuing to 16480-16360 levels and sustained trades below the same should see bearishness strengthening. However, a direct rise above 16850 may call for more short covering.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
16720/16850 |
17140-16850-16400 |
16580-16480 |
|
16950/17060 |
|
16360/16250 |
|
17140/17300 |
|
16140/16000 |
Source: Geojit Comtrade
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