MARKET COMMENTARY
Sentiments were rather muddled in the Indian natural rubber market. While Kerala State government giving nod to the concerned agencies to procure rubber directly from the farmers Rs.2 above the market rate lifted the commodity prices in the physical market towards the close of the week. However, gains remained capped owing to feeble fundamentals in both domestic as well as international front and apprehensions over the effectiveness of the procurement scheme of government. In the meantime, NMCE rubber futures ended lower for the second consecutive week.
As the week’s session commences, natural rubber prices in the overseas market are trading with a negative bias. Weak manufacturing data from China raised concerns over the demand from the top consumer. The official Chinese PMI for the month of February showed a contraction in manufacturing activity to eight month lows.
MARKET NEWS
Natural rubber inventories in Qingdao, China rose to 216600 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 fell 2.0 per cent last week to 203,166 tonnes.
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.
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 tonnes in 2014, from 949,000 tonnes in the previous year, said Tran Thi Thuy Hoa from the Vietnam Rubber Association.
TECHNICAL VIEW
RUBBER Mar NMCE
Inability to clear 15700 ranges last weekend saw a sharp retreat and is likely to continue towards 14940 or more to 14750 levels, which if held downside may call for pullbacks. Else, weakness may strengthen and will have the potential to revisit the recent lows.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
15280/15450 |
15700-14750 |
15050/14940 |
|
15600/15700 |
|
14800-14750 |
|
15800-15960 |
|
14630/14450 |
Source: Geojit Comtrade
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