MARKET COMMENTARY
⊳ Sentiments were on the weaker side in the local natural rubber market last week. On NMCE, the most active October rubber futures retreated from the contract highs to test its weakest level in about two week. However, in the physical market, RSS4 was held in tight ranges. Limited arrivals to the market and resumption of rains in the major rubber growing areas in Kerala continued to provide firm support to the market. Activities were also lethargic as Kerala is celebrating Onam, its national festival.
⊳ It is a silent start for the week with the trend setting TOCOM exchange remaining closed today on account of Respect for the Aged Day. Malaysian market too remained closed as the nation is celebrating Malaysia Day. In the mean time, SHFE rubber futures were seen inching up after declining last week.
MARKET NEWS
⊳ According to the Rubber Board, natural rubber imports in Au natural rubber imports in August more than doubled from a year ago to 40,809 tonnes. The country’s production during the month fell 5.5 percent on year to 69,000 tonnes, while consumption eased by 4 percent to 80,000 tonnes.
⊳ Rubber inventories in the warehouses monitored by SHFE rose 1.5 per cent to 120875 tonnes.
⊳ 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.
TECHNICAL VIEW
RUBBER Oct NMCE
Pullback from 18100 regions unlikely to sustain as long as resistance at 18500 caps upside. Successful attempts to break above 18500 may see further rise towards 18700-18800 ranges. Else, sideways movement inside 18100-18500 ranges could be witnessed.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
18500/18700 |
18500-18100 |
18300/18100 |
|
18860-18970 |
|
17950/17750 |
|
19060/19250 |
|
17600-17500 |
Source: Geojit Comtrade
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