MARKET COMMENTARY
In the week gone by, sentiments stayed largely positive in the local natural rubber market. Sharp fall in production in Kerala, which accounts for about 90 per cent of the total natural rubber output in the country, owing to unremitting monsoon rains has been holding up prices in the local market near the 10 month highs. Gains in the overseas market aided the sentiments too. Still, further gains seemed to be circumscribed. High prices in the local market and increased prospects of imports due to tight supplies may probably cap further advances in natural rubber prices in the local market.
As the week’s session commences, natural rubber is seen inching higher, extending the previous week’s advances. TOCOM rubber futures are on two month high bolstered by upbeat expectations over demand from the top consumer China and on weak yen.
MARKET NEWS
Rubber inventories in the warehouses monitored by SHFE rose 0.2 per cent to 118188 tonnes last week.
Crude rubber stockpiles held at Japanese warehouses fell to 8470 tonnes as of July 31 to its lowest in about seven months, according to data from the Rubber Trade Association of Japan.
China imported 150000 tonnes of natural rubber in July compared to 129827 tonnes imported during last month.
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.
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.
TECHNICAL VIEW
RUBBER Sep NMCE
Requires clearing and sustaining the stiff resistance of 18800 with considerable volume to continue rising. Else, range bound moves are likely to continue with high possibility of lower correction.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
18700/18800 |
18800-17950 |
18500/18250 |
|
19000/19280 |
|
18100/17950 |
|
19400/19650 |
|
17850/17700 |
Source: Geojit Comtrade
Download this report (full content – PDF file) bellow:
