MARKET COMMENTARY
In the absence of fresh triggers, natural rubber continues to rule steady in the Indian markets. On Wednesday, RSS4 in the spot market traded firm near Rs.187 a kg though the market tone remained silent. On NMCE, the grade was held in tight ranges in choppy trades and the benchmark October rubber futures culminated the session 0.5 per cent lower. Activities may probably slow down in coming days with the national festival of Kerala, Onam, round the corner.
Natural rubber prices were in red in the overseas market on Thursday. TOCOM rubber futures dropped more than one per cent weighed down by strengthening yen. Also, investors probably turned cautious ahead of the US FOMC meeting next week that could see some important decision on the asset purchase program coming out.
MARKET NEWS
Thai govt set up three sub-committees to solve the low rubber prices after the network of rubber farmers from 18 southern provinces accepted the government’s subsidy offer. Also, the Bank for Agriculture and Agricultural Cooperatives (BAAC) expects the subsidy money for rubber farmers to be ready for distribution in one month.
The natural rubber (NR) production in India during the current fiscal (2013-2014) is likely to be lower than what was projected earlier, said Smt. Sheela Thomas, Chairman, Rubber Board while delivering the presidential address in the 172nd meeting of the Rubber Board.
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 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.
TECHNICAL VIEW
RUBBER Oct NMCE
Likely to stretch the lower corrective moves being witnessed currently 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 |
18500-18400 |
|
19060/19250 |
|
18350/18200 |
|
19380/19500 |
|
18100/17950 |
Source: Geojit Comtrade
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