MARKET COMMENTARY
Rebounding from the recent plunge, RSS4 in the Indian market firmed up on Monday probably on short covering and improving demand. In the physical market, the grade was quoted Rs.167 a kg while on NMCE, the most active November rubber futures inched higher for the third consecutive session. A jump in natural rubber prices being witnessed in the overseas market on Tuesday may provide further support to prices. TOCOM rubber futures gained three per cent today, rebound from the two month low on anticipation of a rise in demand from China. SHFE reopened today after a week long National Day holiday. Comments from the International Rubber Study Group that natural rubber stocks are shrinking supported the sentiments too.
MARKET NEWS
Natural rubber imports by India in September almost tripled to 45581 tonnes on YoY basis as tyre makers increased purchases from overseas market.
The sixth Annual Rubber Conference of the Association of Natural Rubber Producing Countries will begin today in Sri Lanka.
Kerala Finance Minister urged the central government to impose a complete ban on natural rubber imports and raise import duty.
Monsoon rains that drenched rubber plantations across India and Malaysia are diminishing a glut of supply for the first time in three years, just as record global car sales are boosting demand for tires.
According to Rubber Trade Association of Japan, crude rubber stockpiles held at Japanese warehouses fell 4.3 percent to 4,507 metric tons on Sept. 30.
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.
Rubber exports from Thailand rose 1.6 per cent to 1.98 million tonnes during January-August period.
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 rebound being witnessed may extend towards 17250 or even more to 17500 ranges but requires breaking and sustaining above the same for further upsides. Else, prices could succumb to higher level selling.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
17060/17250 |
17500-17250-16750 |
16800-16750 |
|
17500/17700 |
|
16600/16450 |
|
17840/17950 |
|
16380/16250 |
Source: Geojit Comtrade
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