MARKET COMMENTARY
Sentiments seemed to be muted in the local natural rubber market. In directionless trades, NMCE rubber futures ended flat on Monday while in the physical market, RSS4 steadied near Rs.185 a kg. Tight supply, positive moves in the overseas market as well as depreciating rupee continued to provide firm support to the commodity. However, the activities seemed to be lethargic in the physical market.
Natural rubber is seen taking a hiatus after the recent rally in the international market. TOCOM rubber futures are seen easing on Tuesday, after surging to a three month high. AFET and SHFE rubber futures followed the suit too. Weak economic data from the US and strengthening yen weighed on the sentiments. However, rising crude oil prices and falling inventories are likely to lend support.
MARKET NEWS
TOCOM August rubber futures expired with 126 lots being delivered as against 565 lots delivered in July.
Thai Finance Ministry is seeking a budget of 25 billion baht to help rubber farmers cope with decreasing prices of rubber in the world market.
Rubber farmers from northern Thailand plan to stage a mass protest on Sept 3 if the government does nothing to prevent rubber prices from sliding further.
Rubber inventories in the warehouses monitored by SHFE rose 1.7 per cent to 124,740 tonnes.
Crude rubber stockpiles held at Japanese warehouses fell 10.6 percent to 7,571 metric tons on Aug. 10, according to data from the Rubber Trade Association of Japan.
Kochi to host two international rubber conferences – Asian Latex Conference (ALC) 2013 on September 5 and 6 and India Rubber Summit and Dinner (IRSD) 2013 on September 7.
The Thai government planned to spend 30 billion baht to support farmers and rubber processors, Deputy Prime Minister Yukol Limlamthong said on Aug. 15.
TECHNICAL VIEW
RUBBER Sep NMCE
Require clearing and sustaining above the stiff resistance of 18250 for further upsides. As long as 18250 caps upside, sideways movement could be witnessed with a tendency to correct lower.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
18100/18250 |
18250-17800-17500 |
17900/17800 |
|
18380/18500 |
|
17600/17500 |
|
18700/18800 |
|
17380/17250 |
Source: Geojit Comtrade
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