[Geojit Comtrade] Daily report on Natural Rubber: Aug 7, 2013

MARKET COMMENTARY

Acute shortage in supplies owing to unfavourable weather in the major natural rubber growing areas in Kerala is holding up prices in the Indian market. In the physical market, RSS4 remained in the vicinity of 10 month highs supported by tight supplies even though activities were dull. In futures segment too, while the underlying sentiments were on the greener side, directionless moves were witnessed on Tuesday.

Sentiments are mixed in the overseas market on Wednesday. While SHFE rubber futures inched higher, extending the previous session gains, TOCOM rubber futures swung between positive and negative turfs. Strengthening yen ahead of Bank of Japan’s meet is pondering upon the market. Decline in crude oil prices weighed on too.

MARKET NEWS

ANRPC sees natural rubber imports by China rising 6.6 per cent in 2013 to 3.59 million tonnes.

Indonesian Agricultural Ministry expects 2013 natural rubber output to be at 3.18 million tonnes against the previous estimate of 2.77 million tonnes.

Rubber inventories in warehouses monitored by SHFE declined by 20 tonnes to 117913 tonnes last week. Crude rubber stockpiles held at Japanese warehouses fell 9.7 percent to 10,192 metric tons on July 20, according to data from the Rubber Trade Association of Japan.

Rubber Board revise down June 2013 production to 38000 tonnes from the earlier estimate of 54000 tonnes.

According to Thai Agricultural Minister, the Government has no plans to sell the rubber stocks for now, which stands at 210000 tonnes that it brought through market intervention scheme.

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.

TECHNICAL VIEW

RUBBER Sep NMCE

Sideways movement is likely to continue as long as prices stay inside 18800-17950 levels. Breakout from any of the either sides with considerable volume required for further directional move.

TURNAROUND