MARKET COMMENTARY
RSS4 in the Indian market continues to vary in narrow ranges, though the broad underlying sentiments stayed feeble. In the physical market quotes for the grade ticked higher to Rs.147 a kg on Tuesday though activities remained dull. A similar trend was witnessed on NMCE too. The most active April rubber futures remain trapped in narrow ranges in lacklustre trades. Investors are probably waiting for fresh cues for further directional moves. In the meantime, natural rubber prices in the overseas market are seen surging on Wednesday, stretching the previous session bounce back. SHFE rubber futures jumped more than four per cent probably on speculation that China’s central bank may loosen monetary policy to spur economic growth. TOCOM rubber futures reversed initial losses and rose more than three per cent. Also supporting the sentiments are the speculations over possible shipment curbs by top natural rubber producing countries.
MARKET NEWS
India’s natural rubber production fell 3.2 per cent in February to 60000 tonnes while imports as well as consumption rose to 78000 tonnes 18141 tonnes respectively.
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.
TECHNICAL VIEW
RUBBER Mar NMCE
Even as the broad trend stays bearish, consolidation continues and breakout from either the sides of 15400-14750 levels are mandatory to provide clear directions.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
15050-15150 |
15400-14750 |
14850-14750 |
|
15320/15450 |
|
14630/14450 |
|
15600/15700 |
|
14360/14200 |
Source: Geojit Comtrade
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