MARKET COMMENTARY
NMCE exchange remained closed on Monday on account of Ganesh Chathurthi while in the spot market, RSS4 inched up probably supported by gains in the overseas market amidst limited arrivals to the market. Even as tapping has started in the major rubber growing areas in Kerala, it is yet to resume in full swing thereby restricting supplies to the market. However, it is anticipated to pick up in coming days and market is to enter into the peak production phase soon.
Natural rubber prices in the international market are seen reversing the previous day’s gains on Tuesday. Weighed down by falling crude oil prices, TOCOM, SHFE as well as AFET rubber futures were down over two per cent. Reduced concerns on Syria dragged down crude oil prices.
MARKET NEWS
Thai farmers will meet today to consider whether to hold rallies across the country’s southern provinces on Sept. 14. They earlier threatened to step up protests if the government fails to meet their demands to set a minimum price for ribbed smoked sheet.
Natural rubber imports by China rose 13.3 per cent in August to 170000 tonnes on month on month basis.
According to Association of Natural Rubber Producing Countries, India’s natural rubber production may fall to 868000 tonnes this year while Vietnam’s has been raised to 950000 tonnes.
According to the Thai Department of Disaster Prevention and Mitigation, rain across a third of the country could cause flash floods and landslides between September 11-15 and may affect as many as 26 provinces in the north, northeast and south.
According to Thai Deputy Prime Minister Kittiratt Na-Ranong, the country’s national rubber policy committee planned to double its budget to 21.2 billion baht to subsidies production costs for farmers.
Natural rubber inventories in the warehouses monitored by SHFE rose 0.6 per cent to 119097 tonnes last week.
Thailand’s government said on Friday it had reached a deal with most rubber farmers who have held two weeks of mass protests after offering to support rubber prices at 90 baht per kg, a breakthrough that could end the demonstrations.
TECHNICAL VIEW
RUBBER Oct NMCE
Even as the trend stays positive, likely to trade sideways inside 18500-18860 ranges.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
18860-18970 |
18800-18500-18100 |
18570/18450 |
|
19060/19250 |
|
18350/18200 |
|
19380/19500 |
|
18100/17950 |
Source: Geojit Comtrade
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