MARKET COMMENTARY
Rubber prices have more or less stayed steady over the last one week as buyers have stayed away due to the financial year end. Rubber futures on the Tokyo Commodity Exchange ended nearly flat Monday, erasing earlier gains as market players remained on the sidelines due to China’s official manufacturing data on Tuesday. However, the final Markit/HSBC Purchasing Managers’ Index fell to an eight-month low of 48.0 in March from February’s final reading of 48.5, a private survey showed. A reading below 50 indicates contraction in factory activity. Meanwhile, the country’s official PMI, also released today showed that manufacturing activity had increased.
MARKET NEWS
⊳ Activity in China’s factory sector edged up slightly in March, a government survey showed, though the figure is unlikely to dispel concerns that the world’s second-largest economy is facing a slow first quarter.
⊳The Chinese official Purchasing Managers’ Index grew to 50.3 in March from February’s 50.2, the National Bureau of Statistics said on Tuesday.
⊳Japanese business confidence improved in the three months to March for a fifth straight quarter, a central bank survey showed, but the pace of recovery slowed and sentiment is seen weakening in the following quarter due to worries that a sales tax hike will dent growth.
⊳ According to the latest statistics from the Association of Natural Rubber Producing Countries (ANRPC), major rubber growing countries saw their combined natural rubber output up 19 percent year-on-year in February, and that in January-February up 10 percent year-on-year.
⊳ China’s natural rubber output in January-February rose 33.3 percent, higher than any other country. Thailand’s rose 21 percent.
⊳ Rubber inventories in warehouses monitored by the Shanghai Futures Exchange fell 1.8 percent week-on-week, the exchange said on Friday.
TECHNICAL VIEW
RUBBER Apr NMCE
Previous attempts to break the recent high of 14950 were unsuccessful and prices corrected lower. Looking ahead, weak bias is likely to continue, but major selling is anticipated only on a break below 14580 with volume. Else, expect a choppy trading session inside 14580-14950 levels.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
14790-14950 |
15400-14350 |
14650-14500 |
|
15320-15500 |
|
14420 |
|
15850/16000 |
|
14350-14200 |
Source: Geojit Comtrade
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