MARKET COMMENTARY
Rubber futures on NMCE were trading lower, despite the upside in prices globally. The most-active April contract on NMCE hit a low of Rs.14910 per 100 kg. RSS4 in the domestic market has been steady since past few days. The price was weighed down by low offtake by tyre companies amid sufficient imports. Tokyo rubber futures rose on Wednesday on the back of firm share prices, but weaker crude oil prices limited sharp gains. The natural rubber contracts traded on Shanghai Futures Exchange (SHFE) ended its two-day losses and rebounded on Wednesday, with the benchmark September contract ended higher from previous day. Meanwhile, rubber free-on-board in Thailand remained at 74.10 baht/kg; prices rose 5.3 percent during March 11-17.
MARKET NEWS
Crude rubber stockpiles held at Japanese warehouses rose 2.8 percent to 22056 metric tonnes on March 10, according to data from the Rubber Trade Association of Japan.
Rubber output in Thailand, Indonesia, Malaysia may fall 6 percent- 8 percent this year, according to International Rubber Consortium
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.
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.
TECHNICAL VIEW
RUBBER Mar NMCE
Broad bias is still on the weaker side, but a choppy trading inside 153-149 may be seen in the immediate run. However breaking any of the sides of the regions would suggest fresh directional moves.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
15050-15160 |
15400-14850-14750 |
14950-14850 |
|
15320-15500 |
|
14750 |
|
15850/16000 |
|
14630/14450 |
Source: Geojit Comtrade
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