MARKET COMMENTARY
Natural rubber prices in the Indian market were rather steady on Tuesday. Markets seem to have lost direction and are probably waiting for fresh triggers for further directional moves. In the spot market, RSS4 stayed flat near Rs.187 a kg while on NMCE, the most benchmark October rubber futures remained in the vicinity of the contract high. However, the far month futures were seen declining in lacklustre trades. Activities may probably slow down in coming days with the national festival of Kerala, Onam, round the corner. In the mean time, natural rubber prices in the overseas market traded steady with a negative bias. TOCOM rubber futures inched up after declining the previous day while SHFE and AFET rubber futures were seen revering their initial gains. Weakening yen and robust data from China probably lent support.
MARKET NEWS
The Association of Natural Rubber Producing Countries (ANRPC) 6thAnnual Rubber Conference is to be held at Colombo, Sri Lanka on 8th October 2013.
According to media reports a network of Thai rubber farmers said on Tuesday that it had accepted a government subsidy offer aimed at ending recent mass protests that erupted into violence last week.
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.
TECHNICAL VIEW
RUBBER Oct NMCE
Likely to extend the lower corrective moves and such moves extending beyond 18400 may induce weakness. Now, it requires clearing and sustaining the recent highs for further upsides.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
18860-18970 |
18860-18400-18100 |
18570/18400 |
|
19060/19250 |
|
18350/18200 |
|
19380/19500 |
|
18100/17950 |
Source: Geojit Comtrade
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