MARKET COMMENTARY
Natural rubber prices in the local market were under pressure on Tuesday. RSS4 in the physical market eased from the 10 month highs while on NMCE, the grade declined with the near month August rubber futures shedding nearly two per cent. Rising natural rubber imports and subsiding rains in the major natural rubber growing areas in Kerala pondered upon the market, restricting gains. However, steep fall in natural rubber production and tight supplies to the market continues to provide firm support to the prices.
On Wednesday, natural rubber prices are seen easing in the overseas market following its recent up run. TOCOM rubber futures eased after hitting an 11 week low during the initial trades as yen strengthened. SHFE as well as AFET rubber futures declined as well.
MARKET NEWS
Natural rubber production in India tumbled 32.4 per cent in July to 46000 tonnes and consumption dropped 3.75 per cent to 82500 tonnes on year on year basis. In the mean time, imports jumped 39.2 percent to 29311 tonnes during the same period.
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
Expect prices to move sideways with a negative bias as long as 18800 caps upside.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
18600-18700 |
18800-17950 |
18250/18100 |
|
18800/19000 |
|
17950/17850 |
|
19280/19400 |
|
17700/17500 |
Source: Geojit Comtrade
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