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MARKET COMMENTARY
RSS4 in the local market continues to trade range bound. On Thursday, in the physical market prices dipped in lacklustre trades while on NMCE, the grade culminated the session almost flat. Activities in the market were extremely thin. Amidst mixed fundamentals, investors are probably awaiting for fresh cues for further directional moves. In the meantime, natural rubber prices in the overseas market are seen easing on Friday after the last day’s jump. While SHFE remained close for Mid-Autumn Festival holiday, TOCOM and AFET rubber futures shed more than 0.5 per cent. However, the benchmark February rubber futures on TOCOM is post weekly gains after slumping more than three per cent in the previous week.
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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