MARKET COMMENTARY
Natural rubber traded rather steady with a negative bias in the Indian markets on Tuesday. The benchmark December rubber futures on NMCE culminated the previous session almost flat following an initial fall while in the physical market quotes for RSS4 grade rubber dropped to Rs.156.50 a kg on lacklusture demand from the major natural rubber consuming sector. However, despite the broad trend being bearish, sentiments were partially mixed as heavy rains in major rubber growing areas in Kerala incited some worries over arrivals. In the meantime, natural rubber prices in the overseas market were seen rising on Wednesday. SHFE rubber futures bounced more than one per cent while TOCOM rubber futures inched up supported by an upbeat car sales data from Europe. Weakening Japanese currency lends support to the prices too.
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
Even as the trend stays bearish, as long as 15600-15550 remains undisturbed downside, pullbacks can be anticipated towards 16000 or even more to 16250. Still, it requires clearing the same for further upsides. A direct fall below 15550 will strengthen the bears.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
15900/16000 |
16250-16000-15550 |
15600/15550 |
|
16180-16250 |
|
15400/15350 |
|
16400/16540 |
|
15150/14900 |
Source: Geojit Comtrade
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