MARKET COMMENTARY
RSS4 in the Indian markets paused after it’s recent up run and was seen declining on Tuesday. In the physical market, the grade dipped from one and a half month high on lacklusture buying demand from the major natural rubber consuming sector. A sharp turnabout on NMCE as well as mixed sentiments in the overseas market weighed on. NMCE rubber futures fell more than three per cent, almost erasing the previous gains, possibly on profit booking. Moreover, investors/traders are probably awaiting further details on the rubber procurement scheme proposed by the State Government. In the meantime, natural rubber in the overseas market is seen moving in thin ranges with mild positive bias after the recent bounce back. TOCOM rubber futures edged up on Wednesday and so were AFET and SHFE rubber futures. Gains in crude oil prices aided the sentiments.
MARKET NEWS
Production as well as consumption of natural rubber in India declined 9.4 and 0.9 per cent respectively during the period from April 2013 to January 2014 as compared to the same period in the last fiscal according to the Rubber Board.
The Cabinet Committee on Economic Affairs has approved a 9.6- bln-rupee outlay for the continuation of the “Sustainable and Inclusive Development of Natural Rubber Sector” scheme under the 12th Plan (2012-2017).
The Rubber Board in partnership with stakeholder associations in rubber and related sectors is organising India Rubber Meet 2014 (IRM 2014) at Le Meridien Convention Centre, Kochi on 20 and 21 February 2014.
Rubber inventories in the warehouses monitored by SHFE fell 0.1 per cent last week to 207452 tonnes. ⊳Crude rubber inventories at Japanese ports rose 4.1 percent from 10 days earlier to a near seven-year high of 18094 tonnes as of Feb 10, data from the Rubber Trade Association of Japan showed.
The closely watched rubber inventory in China’s bonded warehouses in Qingdao jumped more than 11 percent in the past month to around 340,000 tonnes, three industry sources said.
TECHNICAL VIEW
RUBBER Mar NMCE
The retreat witnessed in the previous session has probably diluted the prevailing positive momentum. Yet, as long as 15100-15000 ranges holds downside, chances of a bounce back remains wide open.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
15500/15650 |
16060-15000 |
15200/15100 |
|
15820/16060 |
|
15000/14850 |
|
16180-16250 |
|
14750/14600 |
Source: Geojit Comtrade
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