MARKET COMMENTARY
Sentiments stayed weak in the local natural rubber market. On Thursday, RSS4 in the spot market fell below Rs.150 a kg on poor demand from quantity buyers continued to elude from the market. On NMCE too, the grade ended lower for the third consecutive session. However, steep losses were probably limited owing to concerns over decline in production and narrowing gap between prices in the local and international market. Meanwhile, in the wake of steep plunge in natural rubber prices, the Rubber Board has demanded a ban on imports.
Natural rubber prices in the international market are mostly in red as the week’s session culminates. TOCOM rubber futures inched down, stretching the previous session losses ahead of the monthly employment data from the US. Strengthening yen and worries over early tapering of the Fed’s asset purchase program hurt sentiments.
MARKET NEWS
In the meeting of the Executive Committee of Rubber Board, the members demand either a ban on natural rubber imports or temporary suspension of imports against advance licence. The Committee also suggested to raise the import duty to 25 per cent and urged the State and the Central Government to implement a scheme for joint procurement of rubber.
According to ANRPC, natural rubber output from the key growers rose 3.1 per cent during Jan-Nov period this year.
In response to the demand raised by Kerala to hike import duty on natural rubber, the Finance Minister raised doubts regarding feasibility of raising the import duty when natural rubber prices have increased in the international market though assured that the request will be looked upon.
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.
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.
TECHNICAL VIEW
RUBBER Jan NMCE
Even as there exists weakness, it requires clearing support at 15200- 15100 ranges to continue the sell-offs. As long it holds the same, mild pullbacks could be witnesses. However, it is mandatory to clear 15950 to induce a positive momentum.
TURNAROUND
| Resistances | LEVELS | Supports |
| 15450/15560 | 15950-15650-15200 | 15200-15100 |
| 15650/15800 | 15000-14950 | |
| 15950/16050 | 14800/14650 |
Source: Geojit Comtrade
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