MARKET COMMENTARY
NMCE rubber futures were seen stretching gains while RSS4 in the physical market traded firm near one week high on Monday. While the demand from the tyre sector continues to be subdued, anticipation that the Center may soon take a decision upon changing in the import duty on natural rubber buoyed prices. Positive moves in the overseas market lend support too.
On Tuesday, natural rubber took a breather from its up run. On TOCOM exchange, the benchmark May rubber futures eased from the two month highs hit last day. While a weakening yen lend support, worries over demand from China as well as lessening concerns over supply disruptions from Thailand weighed on, restricting further advances.
MARKET NEWS
Rubber inventories in the warehouses monitored by SHFE fell 12.2 per cent to 150978 tonnes last week.
Crude rubber stockpiles held at Japanese warehouses rose 15.3 percent to 6,569 metric tons on Nov. 10, according to data from the Rubber Trade Association of Japan.
According to a report from Economic Intelligence Unit, global natural rubber surplus may reach 134,000 metric tons this year, 200,000 tons next year and 257,000 tons in 2015.
Kerala asks the Centre to stay the decision to allow import of natural rubber without enhancing the excise duty, saying the move has led to a sharp drop in prices and farmers in the key producing state worried.
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.
TECHNICAL VIEW
RUBBER Jan NMCE
As long as 15950 caps upside, a sideways movement inside 15950- 15500 ranges may be seen. A voluminous breakout from either the sides is required for further directional move.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
15950/16050 |
15950-15500 |
15750/15620 |
|
16150/16250 |
|
15500/15400 |
|
16380/16500 |
|
15350/15200 |
Source: Geojit Comtrade
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