MARKET COMMENTARY
RSS4 in the physical market as well as futures market were seen rising on Thursday. Extending gains, NMCE rubber futures advanced with far month contracts gaining three per cent. In the spot market, the grade was quoted around Rs.186 a kg. Narrowing difference between prices in the local and international market lend firm support to the prices. Still, the activities in the physical market stayed subdued.
As the week’s session culminates, natural rubber prices in the overseas market were trading rather steady with negative bias. TOCOM rubber futures were seen swinging between the positive and negative turfs. Simmering worries over tensions in Syria continued to ponder upon the overall market sentiments though positive economic indicators from the US and Japan lend support.
MARKET NEWS
Thailand plans to spend 30b baht to support rubber industry, aiming to boost prices and reduce supply, Deputy Prime Minister Kittiratt Na-Ranong says. Govt to spend 15b baht to provide lowinterest loans to producers of rubber products who want to buy new machinery or improve productivity, 10b baht to subsidize production costs for farmers nationwide and 5b baht to provide lowinterest loans for farmer groups to process rubber.
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.
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.
TECHNICAL VIEW
RUBBER Sep NMCE
Likely to face stiff resistance at 18700-18800 ranges, which requires to clear and sustain to continue its uptrend. Else, expect a turn lower.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
18550/18700 |
18800-18200-17800 |
18200/18050 |
|
18800/18970 |
|
17900/17800 |
|
19250/19380 |
|
17600/17500 |
Source: Geojit Comtrade
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