MARKET COMMENTARY
Natural rubber continued its uptrend in the Indian market on Thursday. In the physical market, RSS4 jumped to its highest level since mid-October. Sentiments were largely on the greener side on anticipation of further rise amidst overall decline in domestic natural rubber output and import duty hike. The grade gained on NMCE as well. The benchmark January rubber futures rose one per cent and are probably on its course to post gains for the second successive week.
On Friday, natural rubber in international market traded rather steady. TOCOM rubber futures inched up for the second consecutive session on weaker yen. The Japanese currency that slid to a five year low provided firm support. In the meantime, SHFE rubber futures were held in tight ranges and are swinging between positive and negative turfs. Worries over demand from China and expectations of expansion in market surplus weighed on.
MARKET NEWS
China stockpiled 60,500 tonnes of domestic rubber this week to support farmers.
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
After the previous session rise above 16500 ranges, prices are approaching towards a stiff resistance region of 16850, which it requires to clear for continuing the buying momentum. Inability to break and sustain above the same could call for corrective downside moves to 16500/16350.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
16700/16850 |
16850-16350-16150 |
16500/16350 |
|
16960/17050 |
|
16260/16150 |
|
17250/17400 |
|
16040/15900 |
Source: Geojit Comtrade
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