MARKET COMMENTARY
RSS4 in the Indian markets crumbled further to hit a fresh five and a half month low on Thursday. The grade, in the physical market slipped to Rs.162 a kg on poor demand. On NMCE too, prices inched further lower. The benchmark November rubber futures hit its weakest level since late-July. Tyre sector, which consumes about 65 per cent of the total natural rubber output in the country, stayed away from the market. However, decline in production and narrowing difference between prices in international and local market may lend lower level support. In the overseas market, meantime, TOCOM rubber futures extended the previous day’s losses as yen strengthened on Friday. However, Chinese economy growing at the fastest pace this year limited losses. China grew at a pace of 7.8 per cent during the third quarter, in line with expectations.
MARKET NEWS
According to reports, rubber inventories in China’s Qingdao bonded area slipped to 259600 tonnes as of October 15 from 271000 tonnes on September 29.
China, the world’s largest natural rubber importer, imported 180,000 metric tons of the material in Sep this year, 5.9% more than in the previous month but 14.3% less than in the same month of last year, according to the statistics released by the General Administration of Customs.
According to Thai Premier, China has agreed to buy 200000 tonnes of Thai rubber per year.
Rubber inventories in the warehouses monitored by SHFE rose 1.2 per cent to 128842 tonnes last week.
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.
TECHNICAL VIEW
RUBBER Nov NMCE
While selling pressure is likely to persist, trades are likely to choppy. However, mild short covering rallies may be seen, if 16250 is held downside or on an unanticipated rise above 16700.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
16500/16700 |
17050-16700-16250 |
16250/16060 |
|
16840/16950 |
|
15940/15800 |
|
17150/17300 |
|
15550/15400 |
Source: Geojit Comtrade
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