MARKET COMMENTARY
As the week’s session culminates, natural rubber prices are seen easing after the recent up run. TOCOM rubber futures dipped, although prices stayed in the vicinity of the seven week highs. However, the commodity was on its course to post its biggest weekly gains in three months. SHFE and AFET rubber futures retreated as well. While concerns over supply provided firm support, weak economic indicators from China released last day weighed on overall market sentiments. Meanwhile, a mixed trend was witnessed in the local natural rubber market on Thursday. While RSS4 in the physical market continue to hover near Rs.147 a kg, on the futures platform a rebound was seen towards the close of the last day’s trading session. The grade managed to end nearly two per cent up after consolidating for the past few sessions.
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.
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
The late rebound witnessed in the previous session may have the potential to stretch to 15400 ranges, which if cleared successfully could see the momentum extending further. Alternatively, a direct fall below 14850 could see further liquidation.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
15200-15320 |
15400-14850-14750 |
15100-15000 |
|
15450/15600 |
|
14850/14750 |
|
15700/15850 |
|
14630/14450 |
Source: Geojit Comtrade
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