MARKET COMMENTARY
The broad trend in the Indian natural rubber market continues to stay under the strange hold of bears. Despite some short covering being witnessed towards the close of the previous week, lacklustre demand and burgeoning import amidst decline natural rubber prices in the overseas market carried on pressurize prices to move south. However, falling natural rubber productions as well as heavy rains in the major rubber growing areas in Kerala lend lower level support. NMCE rubber futures extend the previous week’s losses on Monday while activities in the physical market were affected by a state-wide ‘harthal’ in Kerala.
Natural rubber on the overseas market stayed on the negative turf on Tuesday. TOCOM rubber futures shed more than one per cent weighed down by a stronger yen and on worries over demand from the top consumer China.
MARKET NEWS
Rubber inventories in the warehouses monitored by SHFE rose 6.1 per cent to 163604 tonnes last week.
Crude rubber inventories at Japanese ports stood at 5,697 tonnes as of Oct. 30, rising 7.2 percent from 10 days earlier, data from the Rubber Trade Association of Japan showed.
Malaysia’s production of natural rubber in September declined 1.3 per cent to 71,921 tonnes year-on-year, but exports increased 32.3% to 79,808 tonnes compared to September of 2012 according to its the Department of Statistics.
According to the Association of Natural Rubber Producing Countries, natural-rubber production may rise 3.6 percent to 11 million tons this year from 2012.
SIAM sees car sales in India falling by one to four per cent in the current financial year. October car sales drop 3.9 per cent on year on year basis.
Wholesale deliveries of cars, multipurpose and sport utility vehicles rose to 1.61 million last month, data from the state-backed China Association of Automobile Manufacturers showed.
TECHNICAL VIEW
RUBBER Dec NMCE
Immediate support at 15750, if breached convincingly may drag prices further lower to 15600-15550 ranges. However, it requires clearing the same for further downsides. Unanticipated rise above 16000 ranges may see prices revisiting the recent high or even more.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
15900/16000 |
16250-16000-15550 |
15750/15550 |
|
16180-16250 |
|
15400/15350 |
|
16400/16540 |
|
15150/14900 |
Source: Geojit Comtrade
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