MARKET COMMENTARY
Sentiments stayed rather muddled in the local natural rubber market. RSS4 in the physical market firmed up on Thursday while on NMCE, range bound trades were witnessed. The benchmark February rubber futures were varying in tight ranges last day and finally ended the session 0.36 per cent down. Following the recent sharp plunge, it seems investors are looking for fresh signals for further directional moves. In the mean time, natural rubber in the overseas market is trading mixed too though the broad underlying sentiments remained bearish. While SHFE rubber futures ticked up, TOCOM rubber futures stretched losses and are probably heading to post losses for the sixth successive week. Strengthening yen and concerns over demand continued to ponder upon the market.
MARKET NEWS
Crude rubber stockpiles held at Japanese warehouses rose 4.8 percent to 13,164 metric tons on Jan. 10, according to data from the Rubber Trade Association of Japan.
Rubber inventories in Qingdao, China’s main hub for the commodity, advanced to 304,300 metric tons today, from 290,700 tons at the end of December, the Qingdao International Rubber Exchange said.
China imported 350,000 tonnes of rubber in December, up 66.7 percent on the same month a year ago.
According to Thai Office of Agricultural Economics, rubber production in Thailand may rise 4.3 per cent in 2014 to 4.03 million tonnes.
Annual car sales in India declined for the first time in 11 years in 2013, posting a 9.59 percent fall, according to SIAM.
Natural rubber imports by India in December jumps 46 per cent to 26853 tonnes year on. Production falls 5.3 per cent to 108000 tonnes while consumption rose about 1.4 per cent to 79500 tonnes during the same period.
TECHNICAL VIEW
RUBBER Feb NMCE
Consolidation inside 15100-15550 ranges is in progress and requires a break out from the either the sides for further upside/downside.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
15480-15550 |
15550-15100-14850 |
15300/15200 |
|
15750/15800 |
|
15100/15000 |
|
15950-16050 |
|
14850/14800 |
Source: Geojit Comtrade
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