MARKET COMMENTARY
RSS4 in the local market resumed to decline, following the consolidation in the past few sessions. On NMCE, the grade lose more than 1.5 per cent, while in the physical market, quotes ticked lower to Rs.147 a kg. Despite it being the lean production phase, jaded demand coupled with apprehensions prevailing over the effectiveness of the government’s rubber procurement scheme weighed on overall market sentiments.
As the week’s session culminates, natural rubber prices in the overseas market are seen trading on a negative turf. TOCOM rubber futures erased the initial advances and dipped, although the commodity was probably on its course to post best weekly gain in five months.
MARKET NEWS
Vietnam Rubber Association proposes members and domestic growers cut production in 2014.
According to ANRPC, natural rubber output from the key growers may rise two per cent in 2014 to 11.5 million tonnes.
Severe wintering and prolonged dry weather due to El Nino weather pattern this year will cut global supply, according to International Rubber Consortium Ltd.
Crude rubber stockpiles held at Japanese warehouses rose 3.6 percent to 21,456 metric tons on Feb. 28, according to data from the Rubber Trade Association of Japan.
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.
TECHNICAL VIEW
RUBBER Mar NMCE
While slippage past 14950 have induced weakness, it is likely to strengthen below 14750 and may have the potential to slip towards 14500/14300 ranges. However, mild pullback cannot be ruled out though it is likely to be met with higher level selling. Now a rise above 15400 is mandatory to lessen weakness.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
15050-15150 |
15400-14940 |
14800-14750 |
|
15320/15450 |
|
14630/14450 |
|
15600/15700 |
|
14360/14200 |
Source: Geojit Comtrade
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