MARKET COMMENTARY
Natural rubber prices firmed up in the Indian markets on Wednesday, bolstered by the government’s proposed market intervention scheme to support falling prices. In the physical market, RSS4 rose to a one week high while on NMCE, the grade was seen stretching gains into the third successive day. However, it seemed as if the advances in prices were at a rather slow pace. While apprehensions prevailed in the market over the government’s move to buy rubber one rupee above the market rate, the commodity continued to move south in the international market with prices in the major physical markets dwindling to multi-year lows. Concerns over demand from the top consumer China, continues to mar the market sentiments. On Thursday, TOCOM rubber futures tumbled about three per cent and so were AFET rubber futures.
MARKET NEWS
International Rubber Consortium and International Tripartite Rubber Council will take “appropriate action” against declines if and when necessary, consortium said on website.
Natural-rubber surplus may narrow to 241,000 tons from 384,000 tons last year if global economic growth in line with outlook from International Monetary Fund, according to data from International Rubber Study Group.
The State government has decided to procure rubber directly from rubber growers by paying Re. 1 more than the rates prevailing in the market till the prices climb to Rs.171 a kg.
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.
TECHNICAL VIEW
RUBBER Mar NMCE
With prices breaching the resistance of 14800, it seems the momentum may stretch to 15100. However, inability to break and sustain above 15100 may see some lower corrective moves 14750/14600 ranges and slippage past 14400 may strengthen weakness.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
15000-15100 |
15100-14400 |
14750/14600 |
|
15250/15400 |
|
14400/14200 |
|
15550/15700 |
|
14150/14050 |
Source: Geojit Comtrade
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