MARKET COMMENTARY
RSS4 in the Indian market were held in tight ranges last week, though the broad underlying sentiments stayed feeble. In the physical market the grade was being quoted around Rs.148-147 per kg. On NMCE, higher level selling was witnessed and with the benchmark April rubber futures ending in losses for the third successive week. Ambiguity over the effectiveness of the state government’s rubber procurement scheme amidst broad weakness in the overseas market weighed on overall market sentiments.
Natural rubber in the international market opened the week session on a weaker note. Economic indicators from China released over the last weekend pointed towards a slowdown in the economy, raising worries over demand from the top consumer. Shanghai rubber futures tumbled more than four per cent. TOCOM and AFET rubber futures followed the suit.
MARKET NEWS
Rubber inventories in the warehouse monitored by SHFE dropped 3.2 per cent to 196640 tonnes last week.
Vietnam Rubber Association proposes members and domestic growers to 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
TECHNICAL VIEW
RUBBER Mar NMCE
Even as the broad trend stays bearish, some indecisive moves are being witnessed. Now, a breakout from the either the side of 15400- 14750 is mandatory to provide clear directions.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
15050-15150 |
15400-14750 |
14800-14750 |
|
15320/15450 |
|
14630/14450 |
|
15600/15700 |
|
14360/14200 |
Source: Geojit Comtrade
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