MARKET COMMENTARY
Worries over China’s growth prospects is dragging lower natural rubber prices as the week’s session commences. SHFE rubber futures plunged to its weakest level since June 2009 on worries over property sector growth. TOCOM and AFET rubber futures sunk too, tracking losses on SHFE, shedding more than four per cent. Uncertainty over the State Government’s rubber procurement scheme coupled with sharp declines witnessed in the overseas natural rubber market and jaded demand dragged lower the commodity in the Indian market last week. RSS4 paused its two weeks up run after hitting its highest level since early January this year to culminate last week’s session in the red.
MARKET NEWS
Rubber inventories in the warehouses monitored by SHFE remained unchanged at 207411 tonnes last week.
Global demand for natural rubber seen growing by 5.3 per cent to 11.9 million tonnes -IRSG
China’s natural rubber imports in 2014 seen at 4.26 million tonnes versus 3.85 million tonnes year ago- ANRPC
ANRPC Chief says, Thai internal uncertainty will have an impact on rubber farmers and rubber output is to drop on political unrest.
Rubber production in Vietnam is seen rising to 960,000 tn in 2014, from 949,000 tn in the previous year, said Tran Thi Thuy Hoa from the Vietnam Rubber Association.
According to the Rubber Board, natural rubber imports by India is likely to fall by a third in FY2014-15 as tapping of newly planted trees is expected to boost production.
Kerala State Government 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.
TECHNICAL VIEW
RUBBER Mar NMCE
With prices breaching the lower trend line support, the prevailing weakness is likely to continue and slippage past 14400 could see prices revisiting the recent lows or even more. Alternatively, pullbacks extending beyond 15000 ranges may have the potential to stretch towards 15200 levels, however, it is mandatory to clear 15500 ranges to lessen the prevailing weakness.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
14850/14940 |
15500-15200-14400 |
14620/14500 |
|
15060/15200 |
|
14400/14280 |
|
15400/15500 |
|
14050/13850 |
Source: Geojit Comtrade
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