MARKET COMMENTARY
The trend stayed feeble in the Indian natural rubber market on Tuesday. In the physical market, RSS4 stretched losses to hit its weakest level since late June on lacklustre demand. However, NMCE rubber futures took a breather after the recent declines and ended the session almost flat. With monsoon weakening over Kerala, anticipation of resumption of production in coming weeks amidst higher imports weighed on the overall market sentiment. Steep fall in TOCOM rubber futures weighed on the prices too.
On Wednesday, natural rubber prices are seen stretching the previous session losses in the overseas market. TOCOM as well as SHFE rubber futures shed more than one per cent while on AFET, RSS3 traded steady with a negative bias. Uncertainty over the US Federal Reserve’s asset purchase program pondered upon the market amidst fall in crude oil prices.
MARKET NEWS
TOCOM September rubber futures expired on Tuesday with 62 lots being delivered compared to 126 lots delivered in August.
According to Rubber Trade Association of Japan, crude rubber inventories at the Japanese ports stood at 4613 tonnes as of September 10, falling to its lowest level since August 31, 2010.
All-India Rubber Industries Association urged government to formulate a national policy on rubber similar to policies on petroleum, textiles and information technology.
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 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.
TECHNICAL VIEW
RUBBER Nov NMCE
Even as the trend stays weak, as long as 17450 holds downside, pullbacks to 17840 or more to 17940-18050 cannot be ruled out. A voluminous slippage past 17450 will probably see weakness extending to 17350-17100 ranges.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
17840/17940 |
18100-17450-17100 |
17450/17350 |
|
18050/18150 |
|
17200/17100 |
|
18300/18450 |
|
17000/16900 |
Source: Geojit Comtrade
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