MARKET COMMENTARY
In spite of some sharp up moves in the overseas market for the last few days, natural rubber in the Indian market continues to stay trapped in tight ranges. While the broad underlying sentiments stayed feeble, in the physical market the grade traded steady near Rs.147 a kg on Wednesday in lacklustre trades. A similar trend was witnessed on NMCE too. In the meantime, natural rubber prices in the overseas market are seen stretching the previous day’s gains on Thursday. TOCOM rubber futures inched up to a seven week high supported by positive data from Japan and on concerns over supplies from the top natural rubber producing countries. SHFE and AFET rubber futures edged up as well. However, caution prevailed in the market ahead of the release of key economic indicators from China, which include industrial production.
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
Download this report (full content – PDF file) here
