MARKET COMMENTARY
In lacklustre trades, RSS4 in the Indian market were held in thin ranges on Monday. Reports that the State government may procure the commodity from the growers lent firm support though the demand from the major consuming sector continues to be subdued, limiting gains. RSS4 in the physical market traded steady near Rs.143 a kg while on NMCE, it ended the session a tad lower.
In the overseas market on Tuesday, sentiments stayed weak. TOCOM rubber futures fell to 17-month low pressured by slowdown in manufacturing in the US that raised concerns over the growth momentum. Strengthening Japanese currency and weak equities weighed on the sentiments too amidst absence of the top consumer China from the market owing to Lunar New Year holidays.
MARKET NEWS
Indian Rubber Growers Association has demanded the suspension of natural rubber imports to the country through all channels for a period of one year and also urged the concerned authorities to redefine policy related to rubber import-export.
Union Minister for Commerce Anand Sharma has assured Kerala Chief Minister Oommen Chandy that his Ministry will take steps to protect the interests of rubber farmers, particularly those in Kerala, who have been agitating on the steep fall in the procurement prices of rubber due to imports. He will direct the Central agencies to procure more rubber directly from the farmers.
Union Commerce Ministry is considering increasing the rubber planting subsidy to 30 per cent from the present 20 per cent.
Kerala is considering a proposal for the procurement of rubber to minimise the impact on farmers reeling under the fall in price of natural rubber. The Chief Minister on last Tuesday said that the government has sought assistance of Rs.100 crore from the Price Stabilisation Fund Trust under the Union Commerce Ministry for the same.
Crude rubber stockpiles held at Japanese warehouses stood at eight month high, up 17.6 percent to 15474 metric tons on Jan. 20 from 10 days earlier, according to data from the Rubber Trade Association of Japan.
TECHNICAL VIEW
RUBBER Mar NMCE
While the broad trend stays weak, a consolidation is being witnessed and requires a break out from the broad range of 14000-14800 for further directional moves. For the day, it seems as if mild pullbacks are likely though it is mandatory to clear and sustain above 14800 to extend gains.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
14700-14800 |
15100-14800-14000 |
14400/14200 |
|
14900/15100 |
|
14150/14050 |
|
15250/15400 |
|
13850/13650 |
Source: Geojit Comtrade
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