MARKET COMMENTARY
Sentiments turned weak in the local natural rubber market on Thursday. On NMCE, RSS4 lost more than one per cent, falling to its lowest level in about two weeks. In the physical market too, the grade was quoted lower. Amidst lacklustre demand, steep declines in the overseas market pressured prices to move down. Now, with the national festival of Kerala, Onam, falling on coming Monday, activities are likely to be lethargic.
Extending the previous session losses, natural rubber prices continued to decline in the overseas market on Friday. TOCOM rubber futures lost more than two per cent and are probably heading to post weekly losses pressured by strengthening yen. The Japanese currency rose to its highest level in about one week against the USD. SHFE as well as AFET rubber futures declined as well.
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
Inability to hold the support at 18100 range, downside is likely to see weakness continuing. However, 18100 if held downside may call for a brief pullback to 18500 ranges.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
18500/18700 |
18500-18100 |
18200/18100 |
|
18860-18970 |
|
17950/17750 |
|
19060/19250 |
|
17600-17500 |
Source: Geojit Comtrade
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