MARKET COMMENTARY
⊳ Overall sentiments stayed on the weaker side in the Indian natural rubber market on Thursday. However, a bounce back was being seen on NMCE, with the most active November rubber futures ending one per cent up before testing its weakest level in more than five weeks. In the physical market, activities were almost nil and market tone was silent on lacklustre buying interest from the tyre sector.
⊳ As the week’s session culminates, natural rubber in the overseas market is trading mixed with TOCOM rubber futures continuing to decline while SHFE rubber futures bouncing back following the recent plunge. TOCOM rubber futures are probably heading to post losses for the second consecutive week. Falling crude oil prices weighed on.
MARKET NEWS
⊳ Rubber exports from Thailand rose 1.6 per cent to 1.98 million tonnes during January-August period.
⊳ 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.
⊳ 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
The bounce back witnessed in the last session may have the potential to stretch further if it effectively breaks above17500. Else, expect higher level selling and rupture past strong support of 17100 may see weakness strengthening.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
17500/17600 |
17500-17100 |
17300/17100 |
|
17750-17840 |
|
17000/16900 |
|
17950/18050 |
|
16750/16640 |
Source: Geojit Comtrade
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