MARKET COMMENTARY
While the broad underlying sentiments stays feeble, natural rubber prices in the Indian market continued to vary in tight ranges on Wednesday. RSS4 in the physical market was hovering near Rs.148 a kg and on NMCE, the commodity moved sideways awaiting fresh cues for further directional moves. While the state government’s rubber procurement through the designated agencies scheme lends support, apprehensions prevailing over its effectiveness continue to ponder upon the market.
On Thursday, natural rubber in the international market was seen easing after the previous session rally. TOCOM rubber futures retreated from the two week high hit in the previous session probably tracking crude oil prices. However, wintering in the top natural rubber producing countries and concerns on production owing to El Nino may 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.
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
Consolidation continues and requires a voluminous breakout from 15400-14940 ranges for further directional moves.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
15320/15450 |
15400-14940 |
15050/14940 |
|
15600/15700 |
|
14800-14750 |
|
15800-15960 |
|
14630/14450 |
Source: Geojit Comtrade
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