MARKET COMMENTARY
While the broad trend stays feeble, natural rubber prices are seen steadying after the recent plunge. On Wednesday, a mixed trend is being in the major overseas market though the underlying market sentiments remained weak pressurized by concerns over demand from the top consumer China. TOCOM rubber futures are seen swinging between positive and negative turfs. However, lean production phase in the top natural rubber producing countries lent lower level support, limiting losses. In the Indian markets, natural rubber culminated the previous day’s session rather flat with a negative bias. Activities were subdued on uncertainty prevailing over the proposed rubber procurement scheme by the Kerala state government.
MARKET NEWS
According to Vietnam’s General Statistics Office, the nation shipped 65000 tonnes of rubber in January and February exports are seen at 45000 tonnes.
TOCOM July rubber futures expired with 870 lots (1lot=5tonnes) being delivered compared to 1180 lots delivered the previous month.
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.
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.
TECHNICAL VIEW
RUBBER Mar NMCE
While there exists weakness, mild pullbacks to 14700/14900 cannot be ruled out before resuming to decline. However, an unanticipated rise over 15000 ranges could see the momentum stretching towards 15200.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
14700/14850 |
15000-14050 |
14400/14280 |
|
14960/15060 |
|
14050/13850 |
|
15200/15400 |
|
13500/13200 |
Source: Geojit Comtrade
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