MARKET COMMENTARY
Bears continued to dominate in the domestic natural rubber market. On Thursday, RSS4 in the physical market was quoted as low as Rs.155 a kg, its weakest level in more than three years on poor off take. The grade was under selling pressure in the futures market too. NMCE rubber futures inched further lower, extending earlier losses. However, surfacing worries over arrivals owing rains in the major rubber growing areas as well as the narrowing difference between the quotes prevailing in the local and international market helped to limit losses to a certain extend.
Natural rubber prices in the overseas market are in green as the week’s session concludes. TOCOM rubber futures rose about one per cent buoyed by a weaker Japanese currency. The rise in crude oil prices and equities probably lend 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
The broad trend stays weak and a direct fall below 15550 with robust volume may add on selling pressure. However, 15550 ranges if held downside, will see some pullbacks; still, it requires breaking and sustaining above at least 16000 for a rise.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
15750/15850 |
16250-16000-15550 |
15600-15550 |
|
16000/16180 |
|
15400/15350 |
|
16250/16400 |
|
15150/14900 |
Source: Geojit Comtrade
