MARKET COMMENTARY
Sentiments were rather bland in the local natural rubber market on Thursday. The commodity traded rather steady with a mild negative bias. In the physical market, RSS4 grade rubber dipped to Rs.162.50 a kg while on NMCE, some indecisive moves were witnessed. The most active February rubber futures inched up during the morning session trades following an initial fall only to reverse gains and ended 0.38 per cent down. Activities seemed to be rather muted. Weakness in the overseas market and absence of cues from the major TOCOM rubber futures probably weighed on the sentiments too. In the overseas market, meanwhile, the commodity is seen extending losses as the week’s session culminates. SHFE and AFET rubber futures are trading down, losing about two per cent.
MARKET NEWS
Indonesia sees 2013 natural rubber output to be at 3.18 million tonnes against 3.04 million tonnes produced in 2012.
Crude rubber stockpiles held at Japanese warehouses rose 3.6 percent to 11,965 metric tons on Dec. 20, according to data from the Rubber Trade Association of Japan.
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.
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
Previous session moves point towards an indecisiveness in the market. Slippage past 16400 with considerable volume may see weakness extending 16200 ranges. Else a bounce back may be anticipated.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
16700/16800 |
17050-16400 |
16400-16350 |
|
16900/17050 |
|
16200/16050 |
|
17300/17400 |
|
15900-15850 |
Source: Geojit Comtrade
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