MARKET COMMENTARY
Natural rubber prices in the international market rallied on Thursday following an unanticipated move by the US Federal Reserve to stick on with the $85 billion bond buying program. TOCOM rubber futures jumped more than three per cent early today to hit one week high. Also, protests continuing in Thailand over low natural rubber prices raised worries over possible shipment delays, which supported the prices too amidst reports that China was to buy rubber for government stockpiles. In the mean time SHFE rubber futures remained closed for a three day Mid-Autumn festival holiday and will reopen only on 23rd September.
In the Indian market, natural rubber prices traded mixed on Wednesday. RSS4 in the physical market was seen rising while on NMCE prices continued to trade range bound awaiting fresh triggers for further directional moves.
MARKET NEWS
Bloomberg reports, China held discussions with suppliers about buying 200,000 metric tons of rubber for government stockpiles.
According to the Qingdao International Rubber Exchange, rubber inventories in Qingdao, China’s main hub for the commodity, fell to 283,100 metric tons today, from 295,000 tons on Aug. 30.
Thai rubber farmers resume protests demanding higher price for their produce despite the government offer of 21.2 billion baht subsidy.
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.
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.
TECHNICAL VIEW
RUBBER Oct NMCE
Prices are held inside 18500-18100 ranges and require a breakout from either the sides with considerable volume for further directional moves.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
18500/18700 |
18500-18100 |
18320-18250 |
|
18860-18970 |
|
18100/17950 |
|
19060/19250 |
|
17750/17600 |
Source: Geojit Comtrade
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