MARKET COMMENTARY
RSS4 in the Indian market dropped towards the close of the week following a consolidation. In the physical market, the commodity slipped to its weakest level in about four weeks while on NMCE, the most active October rubber futures registered losses for the second consecutive week, falling to its lowest level in more than three weeks. Even as arrivals to the market continued to be on the lower side, prices remained under pressure from rising imports. Strengthening rupee probably added further pressure. In the mean time, latex (drc 60%) prices are seen rising after the recent fall.
Natural rubber prices in the international market showed a mixed trend on Monday. SHFE rubber futures are seen inching up while AFET rubber futures dipped. SHFE reopened today after Mid- Autumn festival holidays while TOCOM exchange is closed for Autumnal Equinox Day.
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
Following the consolidation inside 18100-18500 range, prices breached the lower support range of 18100 last week. While there exist weakness, pullback rallies to 18100 or more to 18250 could be witnessed, but requires clearing the same for further upsides. Fall below 17850 may see prices visiting 17750 or 17500 in the near term.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
18000-18100 |
18250-17850-17500 |
17850/17750 |
|
18250/18400 |
|
17600-17500 |
|
18500/18700 |
|
17380/17250 |
Source: Geojit Comtrade
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