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MARKET COMMENTARY
Sentiments were muddled in the local natural rubber market on Thursday. While latex (drc 60%) continued it’s upwards journey, RSS4 lacked direction. In the physical market, in lacklustre trades the commodity ruled flat near Rs.195 a kg and on NMCE, the some zigzag moves were witnessed amidst falling volumes. Limited arrivals have been providing firm support to prices though prospects of larger imports due to high prices and dearth in supplies have been restricting gains. Now, investors are probably awaiting new triggers to get fresh directions. In the mean time, natural rubber prices in the overseas market are seen stretching previous day’s losses on Friday. TOCOM rubber futures reversed initial gains and slumped, shedding about two per cent. SHFE as well as AFET rubber futures are seen declining too.
MARKET NEWS
TOCOM July rubber futures expired yesterday with 565 lots being delivered compared to 471 lots delivered in the previous month.
Malaysian Plantation Industries and Commodities Ministry targets to replant 37,282 hectares of rubber and open 13,000 hectares of new rubber plantations in the country this year.
The Automotive Tyre Manufacturers Association (ATMA) has informed Union commerce minister Anand Sharma that the industry is going for huge imports of natural rubber as the industry’s production schedules have been hit by the limited availability of natural rubber and its spiralling prices in the domestic market.
According to Vietnam’s General Department of Customs, the nation earned $971 million from export of 385,000 tons of rubber in the first half of this year and the figures represent year-on-year decrease of 4.4% in volume and 19.5% in value, the government agency reported.
According to International Rubber Study Group, natural rubber surplus for 2013 is likely to be at 92000-284000 tonnes. World consumption of natural rubber is seen rising by 2.0-5.0 per cent compared to the previous estimate of 2.3-5.9 per cent rise.
TECHNICAL VIEW
RUBBER Aug NMCE
Require clearing and sustaining either the immediate upside resistance of 19360 or the recent low of 18865 for further directional move.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
19360/19580 |
19800-19500-18750 |
19000/18865 |
|
19800/20000 |
|
18760/18500 |
|
20100/20400 |
|
18200/18000 |
Source: Geojit Comtrade
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