MARKET COMMENTARY
Bolstered by worries over supplies, natural rubber in the Indian market were seen rising last week. RSS4 grade rubber hit its strongest level since late November 2012 in the physical market towards the close of the week as widespread rains in major rubber growing areas in Kerala fuelled worries over availability. In the futures segment too the grade rose with the benchmark July rubber futures ending the week’s session 3.6 per cent higher, snapping two successive week of declines. In the mean time, in the global scenario, the commodity remained under pressure on anticipation of increase in production amidst gloomy economic outlook. Today, a mixed trend is being witnessed. While SHFE remained closed on account of Dragon Boat Festival, in TOCOM RSS3 is seen swinging between positive and negative turfs. As investors look forward for the meeting of the top three producers this week, slowing auto sales in China and lower imports hurt prices.
MARKET NEWS
Natural rubber imports by China fell to 180000 in May compared to 227320 tonnes imported the previous month.
According to China Association of Automobile Manufacturers wholesale deliveries of cars, multipurpose and sport utility vehicles increased 9 percent to 1.4 million units in May compared to 13 per cent growth achieved during the previous month.
Rubber inventories in the warehouses monitored by SHFE rose 0.1 per cent to 114324 tonnes last week.
According to Rubber Trade Association of Japan, crude rubber inventories in the Japanese ports as of May 20 fell 756 tonnes to 14881 tonnes over a period of ten days.
According to ANRPC, natural rubber production from Indonesia is seen rising 5.0 per cent to 3.18 million tonnes while that of Malaysia is seen at 980000 tonnes, up 6.8 per cent this year.
Top three natural rubber producing countries, Thailand, Indonesia and Malaysia, to meet in Indonesia from June 12th to 14th to discuss measures to stabilise natural rubber prices.
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.
TECHNICAL VIEW
RUBBER July NMCE
Even as positive bias exists, it requires clearing the immediate resistance of 17200 to continue the buying momentum towards 17400-17500 levels. However, corrective dips towards 16900- 16850 levels cannot be ruled out before resuming its uptrend.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
17200/17300 |
17500-17200-16850 |
17000/16900 |
|
17400/17500 |
|
16850/16600 |
|
17650/17800 |
|
16500/16370 |
Source: Geojit Comtrade
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