MARKET COMMENTARY
Natural rubber prices in the Indian market traded rather firm on Thursday. While the underlying trend still stayed weak, RSS4 in the physical market steadied near Rs.151 a kg while on NMCE, the benchmark January rubber futures ended the session a tad higher awaiting fresh triggers for further directional moves. While rising natural rubber prices in the overseas market and fall in domestic production lend support, concerns over demand from the tyre sector continued to weigh on.
As the week’s session culminates, natural rubber prices are seen easing after the last day’s advances. On TOCOM, the commodity is hovering near its 12 week high and probably on its course to post its best weekly gains in three months. Optimism over demand from China and weak Japanese currency buoyed prices.
MARKET NEWS
According to Office of the Rubber Replanting Aid Fund, Thailand to restart collecting fees on rubber shipments from January after a 4- month exemption.
Crude rubber stockpiles held at Japanese warehouses rose 30 percent to 9,320 metric tons on Nov. 20, according to data from the Rubber Trade Association of Japan.
Natural rubber imports by India in November declined 4.57 per cent to 22872 tonnes on year on year basis. Production dropped as well, by 7.1 per cent to 91000 during the same period.
China’s natural rubber imports surged to 270000 tonnes in November, a rise of 42 per cent on month on month basis and 25 per cent year on year.
Rubber inventories in the warehouses monitored by SHFE rose 7.2 per cent last week to 161896 tonnes.
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.
TECHNICAL VIEW
RUBBER Jan NMCE
A consolidation is being witnessed currently. As long as 15200- 15100 ranges hold downside, pullbacks are likely. However, it requires clearing the immediate resistance of 15650 for further upside and successful attempts to break 15950 could induce positive sentiments.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
15650/15800 |
15950-15650-15200 |
15350/15200 |
|
15950/16050 |
15100/15000 |
|
|
16150/16250 |
14950/14800 |
Source: Geojit Comtrade
Download this report (full content – PDF file) bellow:
