MARKET COMMENTARY
Natural rubber prices in the overseas market are on a positive turf on Thursday. TOCOM rubber futures bounced off from the one month low hit last day. The benchmark June rubber futures gained nearly one per cent supported by a stronger yen. SHFE and AFET rubber futures inched up as well. However, concerns that global natural rubber surplus may expand next year weighed on the overall market sentiments. In the meantime, as Indian markets reopen today after the Christmas Day holiday, natural rubber prices are anticipated to extend the gains. NMCE rubber futures gained nearly one per cent on Tuesday while in the physical market, the grade traded firm near Rs159.50 a kg. Hike in import duty amidst overall decline in domestic natural rubber output in this peak production phase lends firm support.
MARKET NEWS
Data from Thai Ministry of Commerce showed that the country’s rubber exports in November jumped 35 per cent to 340497 tonnes.
According to Vietnam’s Ministry of Agriculture and Rural Development, rubber exports in December seen at 126,000 tons.
Crude rubber stockpiles held at Japanese warehouses rose 6.2 percent to 11553 tons on Dec.10, the highest level in six months, according to data from the Rubber Trade Association of Japan.
India raises import duty on natural rubber 20 per cent or Rs.30, whichever is lower from the existing 20 per cent or Rs.20, whichever is lower.
Rubber inventories in Qingdao, China’s main hub for the commodity, advanced for a third week to 282,700 tons from 276,300 tons at the end of November, according to the Qingdao International Rubber Exchange.
According to a report appeared on Bloomberg, China, the largest rubber consumer, bought 87,200 metric tons for government stockpiles
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.
TECHNICAL VIEW
RUBBER Jan NMCE
With prices holding the support of 16150, a bounce back was witnessed. However, now it requires clearing and sustaining above 16500 for further upsides to 16650 or more.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
16500/16650 |
16500-16150-15900 |
16320/16150 |
|
16700/16850 |
|
16040/15900 |
|
16960/17050 |
|
15800-15700 |
Source: Geojit Comtrade
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