MARKET COMMENTARY
A mixed trend is being witnessed in the Indian natural rubber market. Even as RSS4 continues to trade firm in the spot market, NMCE rubber futures were seen falling on Monday. Paucity in availability carries on providing strong support in lacklustre trades in the physical market. However, anticipation of higher imports in coming months and lower natural rubber prices in the overseas market is keeping further advance in prices under check. In the mean time, TOCOM rubber futures are seen bouncing back after the previous session declines on Tuesday. A weaker Japanese currency lent support. TOCOM rubber futures are probably on its course to post first monthly gains in six months as weaker yen increased the appeal of the commodity. SHFE rubber futures inched up too, paring initial losses.
MARKET NEWS
According to Thai Agricultural Minister, the Government has no plans to sell the rubber stocks, which stands at 210000 tonnes that it brought through market intervention scheme for now.
Rubber inventories in the warehouses monitored by SHFE rose 2.3 per cent to 117933 tonnes.
TOCOM July rubber futures expired 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.
TECHNICAL VIEW
RUBBER Aug NMCE
The support at 19000, if held down side could see a pullback to 19300 or more to 19600 levels. However, it requires breaking and sustaining 19800 for strong upsides. On the other hand, fall past 19000 with considerable volume may see prices revisiting recent lows and more.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
19300/19600 |
19800-19000-18500 |
19000/18865 |
|
19800/20000 |
|
18760/18500 |
|
20100/20400 |
|
18200/18000 |
Source: Geojit Comtrade
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