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MARKET COMMENTARY
Following an initial rise, RSS4 in the Indian markets eased on Wednesday. In the physical market, the grade steadied near Rs.168 a kg while NMCE rubber futures retreated after posting four successive sessions of gains. While the broad trend stays on the weaker side, sentiment seems to be muddled. Arrivals continued to be on the lower side even as market have entered the peak production phase. According to sources, tapping activity is yet to gather pace. However, higher imports and lacklustre demand from the tyre sector continues to put a lid on gains.
Natural rubber prices are seen declining on Thursday in the international market. TOCOM rubber futures dropped over two per cent pressured by decline in crude oil prices amidst US fiscal uncertainty. SHFE and AFET rubber futures declined as well.
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
As long as 17500 range caps upside, higher level selling is likely. 16800-16750 poses to be the immediate ranges below which expect weakness to prevail.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
17150/17300 |
17500-17150-16800 |
16950/16800 |
|
17500/17700 |
|
16750/16600 |
|
17840/17950 |
|
16450-16380 |
Source: Geojit Comtrade
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