MARKET COMMENTARY
Rubber price in the Indian spot market remained unchanged for the third straight day due to thin trade. Rubber futures were trading slightly lower taking cues from the mild decline in benchmark contracts on the global exchanges and also due to weak sentiments in major spot market. Consumers are circumventing inventory building ahead of the end of the financial year. However, the upside in prices is seen limited for the day ahead because of lack of cues amid the public holiday in Japan. Reports of high rubber stocks in China and Japan too weigh down the market sentiments. As well, on the NYMEX, crude prices fell after data from the US Energy Information Administration showed a higher-than-expected rise in crude oil inventories. US crude oil stocks rose by 5.9 mln barrels to 735.9 mln in the week ended March 14, above estimates of a 2.3 mln barrel increase.
MARKET NEWS
⊳ Vietnam’s rubber production jumped 20.8 percent in 2013 compared with 2012, according to the Association of Natural Rubber Producing Countries, the Vietnam Economic Times newspaper reported.
⊳ 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
Strong support is seen at 14750, which if broken likely to continue the prevailing weak sentiments. At the same time, unsuccessful attempts to break the same possibly call for a corrective turn higher which may extend towards 15100 later.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
14980-15060 |
15400-14850-14750 |
14600-14520 |
|
15320-15500 |
|
14450 |
|
15850/16000 |
|
14350-14200 |
Source: Geojit Comtrade
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