MARKET COMMENTARY
Natural rubber in the Indian market continued to trend down. Burgeoning imports coupled with lean demand from the tyre sector is pressurizing prices. In the physical market, RSS4 ruled flat near Rs.160 a kg while on NMCE, rubber futures culminated nearly 0.6 per cent lower on Thursday in lacklustre trades. Overall tone of the market remained silent. In the mean time, voice is growing demanding central government intervention to intervene into the natural rubber market in order to arrest deep plunges in prices.
As the week’s session concludes, natural rubber in the overseas market is trading rather steady with a negative bias. TOCOM rubber futures resumed to decline after inching up from the two week lows in the previous session and are probably heading to post weekly losses for the first time in three weeks.
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According to IMD, Southwest monsoon has withdrawn from Kerala & Lakshadweep on 21st October 2013.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 |
|
16050-16200 |
16500-16300-15800 |
15900/15800 |
|
16300/16500 |
|
15700/15550 |
|
16700/16840 |
|
15400-15350 |
Source: Geojit Comtrade
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