MARKET COMMENTARY
Lacklustre buying interest from the major natural rubber consuming sector continued to drag prices down. Moreover, with peak production season approaching and monsoon rains weakening over Kerala, anticipation of resumption of production in coming weeks amidst higher imports weighed on the overall market sentiment. Weakness in natural rubber prices in the international market pondered upon the market too. RSS4 was bound south in the local market on Wednesday, with quotes in the physical market further lower to Rs.175 a kg. On NMCE, the grade tumbled more than two per cent, with the near month October rubber futures hitting its weakest level in five weeks.
Stretching earlier losses, TOCOM rubber futures are hovering near one week low on Thursday weighed down by strengthening yen and falling crude oil prices.
MARKET NEWS
The network of farmers from the Thailand’s 16 rubber-planting southern provinces has submitted five demands to the government while threatening to escalate their protests if the demands are not met within 7 days. The demands came despite that fact that the provincial authorities had provided around 800 rubber farmers with the first batch of subsidy on Tuesday.
According to Vietnam’s General Statistics Office, the nation shipped 107000 tonnes of rubber in August and is expected to rise 5.5 per cent in September.
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.
TECHNICAL VIEW
RUBBER Nov NMCE
While there exist weakness, 17100 ranges if held downside may call for a brief pullbacks to 17310 or more to 17500 but requires sustaining above the same to lessen the prevailing weakness. Below 17100, expect prices to test 16900 or more.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
17310/17500 |
17500-17100 |
17100/17000 |
|
17600/17750 |
|
16900/16750 |
|
17840/17950 |
|
16640/16500 |
Source: Geojit Comtrade
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