MARKET COMMENTARY
NMCE rubber futures culminated Wednesday’s session rather flat while in the physical market, quotes for RSS4 inched further lower in lacklustre trades. The overall market sentiments stayed bearish on lack of buying interest from the major natural rubber consuming industry. However, the arrival of North East monsoon in Kerala, top natural rubber producing state, may probably lend lower level support.
A mixed trend in natural rubber prices is being witnessed in the overseas market on Thursday. TOCOM rubber futures pared initial losses and inched higher from the two week lows while SHFE rubber futures are seen trimming losses following an upbeat Chinese manufacturing data.
MARKET NEWS
Global output to grow next year from an estimated 11.7 mln tons in 2013 as plantings between 2006-2008 come into tapping, according to Lekshmi Nair, senior economist at International Rubber Study Group.
Cheng Shin Rubber Industry Co Ltd. , JK tyre, Apollo Tyres and Shandong Group, plan to build factories in Indonesia and have made a combined investment of about $1.28 billion, according to Aziz Pane, chairman of Indonesia’s tyre manufacturers association (APBI).
According to IMD, Southwest monsoon has withdrawn from Kerala & Lakshadweep on 21st October 2013. Simultaneously, Northeast monsoon rains have commenced over Kerala & Lakshadweep.
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.
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.
TECHNICAL VIEW
RUBBER Nov NMCE
The broad trend stays weak. Likely to trade range bound inside 15800-16300 and requires a breakout from either the 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 |
|
16190/16300 |
16500-16300-15800 |
16000/15900 |
|
16500/16700 |
|
15800/15700 |
|
16840/16950 |
|
15550/15400 |
Source: Geojit Comtrade
Download this report (full content – PDF file) bellow:
