MARKET COMMENTARY
On Tuesday, following a firm opening, NMCE rubber futures lost ground later in the session dragged down by media reports that the Union Finance Ministry may not raise the import duty on natural rubber owing to practical difficulty. The grade ended more than two per cent down in the futures segment while in the physical market prices slipped to Rs.151 a kg. In a meeting with the Finance Minister, the State Chief Minister had raised concerns over steep decline in natural rubber prices and demands a raise in import duty of the commodity. However, the Finance Minister raised doubts regarding feasibility of raising the import duty when natural rubber prices have risen in the international market though assured that the request will be looked upon.
MARKET NEWS
Indonesia’s main rubber grouping has called on the world’s second largest producer to cut output next year by 10 percent and urged other Southeast Asia rubber-growing countries to do the same to reduce global stocks and support prices.
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.
TECHNICAL VIEW
RUBBER Jan NMCE
There exists considerable weakness after the steep plunge in the previous session. However, it requires clearing support at 15200- 15100 ranges to continue the sell-offs. Else bounce back towards 15650 may be witnessed initially. Still, it is mandatory to break and sustain above 15950 to revive some positive sentiments.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
15500/15650 |
15950-15500 |
15350/15200 |
|
15800/15950 |
|
15100/15000 |
|
16050/16150 |
|
14950/14800 |
Source: Geojit Comtrade
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