MARKET COMMENTARY
Natural rubber prices in the Indian market stayed feeble. On Tuesday, RSS4 in the physical market ruled flat near the six month low while NMCE rubber futures culminated the session in red following an initial rise amidst dull volumes. With demand for the commodity staying skimpy despite lower production, market continues to remain under pressure to move south. However, the arrival of North East monsoon in Kerala, top natural rubber producing state, may probably lend lower level support.
On Wednesday, natural rubber is trading in red in the overseas market. TOCOM as well as SHFE rubber futures declined tracking a lower than anticipated employment data from the US. The benchmark March rubber futures on TOCOM dropped nearly two per cent as yen strengthening against the dollar on weak data. Decline in crude oil prices weighed on too.
MARKET NEWS
According to IMD, Southwest monsoon has withdrawn from Kerala & Lakshadweep on 21st October 2013.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
The broad trend stays weak. For the day, probably to trade range bound inside 15800-16300 and requires a breakout from either side with considerable volume for further moves. Above 16300, expect prices to rise towards 16500 or even more. And on the lower side, below 15800, next major support is seen only at 15500 ranges.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
16300/16500 |
16500-16300-15800 |
16000/15800 |
|
16700/16840 |
|
15700/15550 |
|
16950/17150 |
|
15400/15350 |
Source: Geojit Comtrade
Download this report (full content – PDF file) bellow:
