MARKET COMMENTARY
NMCE exchange remained closed on Wednesday on account of Gandhi Jayanthi. Earlier, RSS4 in the Indian markets showed an extreme bearish trend. In the physical market, the grade plummeted to its weakest level since early May on lack of buying interest from the major natural rubber consuming sector. On the futures segment too prices had slumped with the near month October rubber futures plunging to weakest level in five months. The sudden vertical decline in prices has pressed dealers to protest and urged the government to take necessary steps to arrest such fall. In the meantime, natural rubber prices are seen bouncing back following the recent decline on Thursday. TOCOM rubber futures rose for the first time in five days from the seven week low. AFET rubber futures gained as well while SHFE remained closed for a week long National Day Holiday.
MARKET NEWS
According to the chairman of the Rubber Association of Indonesia, the nation’s natural rubber production for 2013 is seen at 3.2 million tonnes from 3.04 million tonnes produced last year.
8500 rubber dealers across Kerala and Tamil Nadu downed the shutters in protest against falling natural rubber prices and poor offtake on Monday.
According to Rubber Trade Association of Japan, crude rubber stockpiles held at Japanese warehouses rose 2.1 percent to 4,708 metric tons on Sept. 20.
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 the 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.
TECHNICAL VIEW
RUBBER Nov NMCE
The broad trend remained bearish. However, following the recent plunge, it seems to be exhausted and is likely to call for a relief rally probably towards 16800/17000 ranges. Still, it is mandatory to clear 17500 upside for lessening the present weakness.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
16800/16970 |
17500-16500 |
16300-16250 |
|
17050/17300 |
|
16100-16040 |
|
17500/17700 |
|
15800-15700 |
Source: Geojit Comtrade
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