MARKET COMMENTARY
Riding firm, RSS4 in the physical market moved further away from the five month low hit last week. The grade edged further higher to Rs.168.50 a kg. Advances on NMCE, sharp rebound in natural rubber prices in the international market along with limited arrivals bolstered prices. Gaining nearly two per cent, the most active November rubber futures rose for the fourth consecutive session, to hit its highest level in about two weeks.
Following a sharp rebound last day, natural rubber is seen trading mixed in the international market on Wednesday. TOCOM as well as SHFE rubber futures are swinging between positive and negative turfs weighed down by US fiscal uncertainty and on worries over global economic growth after IMF trimmed its world economic growth forecast.
MARKET NEWS
According to Thai Ministry of Agriculture and Cooperatives, the number of para-rubber farmers applying for the Government’s compensation program has surpassed the target figure by 100,000.
According to ANRPC, natural rubber output among its member countries is likely to rise 3.2 per cent in next year to 10.968 million tonnes.
Natural rubber imports by India in September almost tripled to 45581 tonnes on YoY basis as tyre makers increased purchases from overseas market.
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.
TECHNICAL VIEW
RUBBER Nov NMCE
17500 ranges upside seems to be stiff obstacle, which it requires to clear and sustain to continue the buying momentum. Else, higher level selling may be witnessed.
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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