MARKET COMMENTARY
Sentiments in the local market were mildly on the greener side on Tuesday lifted by the State government’s market intervention scheme. In the physical market, RSS4 was rather steady around Rs.146 a kg as growers held back the stocks in anticipation of further rise in prices. On NMCE too, the grade was seen extending gains. However, an indecisiveness and uncertainty over the feasibility of the government’s proposed scheme prevailed, capping gains.
On Wednesday, TOCOM rubber futures was seen reversing initial gains after hitting one week high while SHFE and AFET rubber futures dropped following the recent bounce back. Sentiments were probably muddled with natural rubber imports by China shooting up in January on the one hand and rubber exporters from the top producer, Thailand pledging to refrain from selling below production costs on the other hand.
MARKET NEWS
Aimed at arresting steep plunges in natural rubber prices, Thai Rubber Association has asked exporters to refrain from selling RSS below $1.90/62.70 baht.
Rubber imports by China jump 22.7 per cent to 480000 tonnes in January on year on year basis.
The International Rubber Consortium that met on February 8th to review the current market situation assessed that the current stock levels in the ITRC is lower than being reported in media and that wintering in coming months is likely to lower the stocks further. It acknowledged that the current prices are unreasonably low and urged the respective Trade Associations in ITRC countries not to offer natural rubber at such low prices.
Kerala State government has decided to procure rubber directly from rubber growers by paying Rs.2 over and above the rate daily market rate fixed by the Rubber Board. ⊳Kerala Finance Minister, K M Mani, assured that a system will be put in place to ensure legitimate price for rubber and added that the legitimate price will be decided after taking the average of rubber price in the previous years. ⊳Crude rubber inventories at Japanese ports rose 12 percent from 11 days earlier to a near seven-year high of 17,387 tonnes as of Jan. 31, data from the Rubber Trade Association of Japan showed.
TECHNICAL VIEW
RUBBER Mar NMCE
Pullbacks were witnessed in the previous session after taking support at 14850. For the day, it seems as if certain directionless moves are likely to continue. However, a direct rise above 15250 or slippage past 14600 could provide fresh directions.
TURNAROUND
| Resistances | LEVELS | Supports |
|
15180-15250 |
15250-14600-14400 |
14950/14850 |
|
15400/15550 |
|
14750/14600 |
|
15750-15850 |
|
14400/14200 |
Source: Geojit Comtrade
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