MARKET COMMENTARY
While the broad underlying sentiments stayed weak, natural rubber prices in the Indian market were held in tight ranges on Tuesday. RSS4 in the physical market was hovering near Rs.148 a kg and on NMCE, the commodity moved sideways in narrow ranges. Even as the state government began the rubber procurement scheme through the designated agencies, apprehensions prevailing over its effectiveness continue to ponder upon the market. In the meantime, a bounce up in natural rubber prices in the overseas market is likely to lift the sentiments in the local market too. On Wednesday, TOCOM rubber futures are seen surging, gaining more than three per cent after China maintained 7.5 per cent growth rate for the present year. Worries over the possibility of weather phenomenon, El Nino affecting natural rubber production, firm oil prices and weak yen too lend support.
MARKET NEWS
Severe wintering and prolonged dry weather due to El Nino weather pattern this year will cut global supply, according to International Rubber Consortium Ltd.
Natural rubber inventories in Qingdao, China rose to 216600 tonnes.
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
While the broad bearish trend prevails, indecisive moves were witnessed in the previous session. Now either a rise above 15400 or a fall below 14940 is likely to provide fresh directions.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
15200/15320 |
15400-14940 |
15050/14940 |
|
15450/15600 |
|
14800-14750 |
|
15700/15800 |
|
14630/14450 |
Source: Geojit Comtrade
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