MARKET COMMENTARY
Natural rubber in the Indian market remained under pressure. On Wednesday, quotes in the physical market lowered to Rs.152 a kg on jaded buying interest from the major natural rubber consuming sector. However, on NMCE, the commodity managed to trim the initial losses and ended the session in green. Despite the State government measures to prop up prices, weak cues from the domestic as well as international front continue to weigh on the overall market sentiments. In the meantime, natural rubber prices in the international market tumbled on Thursday after contraction in Chinese manufacturing PMI to a seven month low intensified worries over the demand from the top consumer amidst burgeoning stockpiles and global supply glut. SHFE rubber futures shed more than 3.5 per cent, while on TOCOM, the losses neared three per cent.
MARKET NEWS
According to the Rubber Board, natural rubber imports by Indian likely to fall by a third in FY2014-15 as tapping of newly planted trees is expected to boost production.
The first edition of the two day Indian Rubber Meet to start today in Kochi.
Kerala State Government yesterday raised the handling charges to be paid to the agencies entrusted to procuring rubber from Rs.4/kg to Rs.6/kg and announced that a corpus fund of Rs.50 crore will be raised by a consortium of co-operative banks for rubber procurement.
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). ⊳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.
TECHNICAL VIEW
RUBBER Mar NMCE
Even as the support around 15100-15000 ranges were held in the previous session, now it is mandatory to break and sustain above 15500 to stretch the bounce back. Slippage past 15000 with considerable volume will induce weakness.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
15500/15650 |
16060-15500-15000 |
15140/15060 |
|
15820/16060 |
|
14850/14750 |
|
16180-16250 |
|
14620/14500 |
Source: Geojit Comtrade
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