MARKET COMMENTARY
Natural rubber prices in the Indian market were seen inching up on Thursday. While NMCE stayed closed on account of Mahashivrathri, in the physical market, RSS4 rose after the Kerala State government issued permission to Rubbermark, Marketfed etc. to procure rubber directly from the farmers at a price above the Kottayam market price by Rs.2.
In the overseas market, natural rubber prices are seen bouncing back on Friday following the recent sharp plunges. TOCOM rubber futures gained more than three per cent tracking gains on SHFE and upbeat industrial production data from Japan. Concerns over production in Thailand too lend support to the prices. However, the commodity is posed to culminate this month in the red.
MARKET NEWS
Kerala State Government has issued permission to procurement agencies to start procuring rubber directly from farmers at a price above the Kottayam market price by Rs.2.
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.
TECHNICAL VIEW
RUBBER Mar NMCE
Even as the broad trend stays weak, the pullback witnessed in the previous session has the potential to extend towards 15000 ranges and sustained trades over the same could lessen the prevailing bleak sentiments. Alternatively, sustained trades below 14500 will strengthen bears.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
14850/14960 |
15000-14500-14050 |
14500/14400 |
|
15060/15200 |
|
14280/14050 |
|
15400/15540 |
|
13850/13500 |
Source: Geojit Comtrade
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