MARKET COMMENTARY
Market sentiments continued to be in doldrums. RSS4 in the local market was hovering near its weakest level on Monday, since late- April this year on poor demand. However, a marginal improvement was witnessed on the domestic futures front. On NMCE, the benchmark November rubber futures ended marginally up after plunging towards a six month low during the morning trades. In the mean time, the Indian Meteorological Department’s latest bulletin shows that North-East Monsoon has arrived over Kerala.
On Tuesday, natural rubber prices in the overseas market traded rather steady. TOCOM rubber futures were seen inching up supported by a weak yen ahead of the employment data from the US following an initial fall. However, gains were limited weighed down by falling crude oil prices.
MARKET NEWS
According to IMD, Southwest monsoon has withdrawn from Kerala & Lakshadweep yesterday, the 21st October 2013. Simultaneously, Northeast monsoon rains have commenced over Kerala & Lakshadweep.
Kerala Chief Minster stressed the need to improve natural rubber prices and urged the central government to take necessary steps.
Union Minister for Commerce and Industry Anand Sharma, while laying the foundation stone for a rubber park in Pathanamthitta district, says efforts at improving quality and variety of rubber products are lacking.
Rubber inventories in the warehouses monitored by SHFE rose 9.0 per cent to 140445 tonnes last week.
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.
TECHNICAL VIEW
RUBBER Nov NMCE
Despite weakness, pullbacks to 16300 ranges may be seen initially and once it clears the same, expect short covering rallies to continue towards 16500 or more. However, a direct fall past 15800 ranges will add on to further selling pressure.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
16300/16500 |
16500-16300-15800 |
16000/15800 |
|
16700/16840 |
|
15550/15400 |
|
16950/17150 |
|
15350/15150 |
Source: Geojit Comtrade
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