MARKET COMMENTARY
Rubber futures ended higher Tuesday tracking the upside in benchmark contracts on the Tokyo Commodity Exchange. However, low demand and persisting weak sentiment in the spot market is seen weighing on prices in the near term. Prices have largely remained steady in the domestic market over the last one week amid absence of quantity buying in the spot market. However, rubber futures on TOCOM were down today. The benchmark September contract on the Tokyo Commodity Exchange was at 228.6 yen per kg, down 5.9 yen from the previous close. As well, U.S. crude futures inched down to $99 a barrel on Wednesday, trading near the lowest in 1-1/2 weeks, as investors eyed government inventory data to assess fuel demand at the world’s largest oil consumer.
MARKET NEWS
U.S. factory activity accelerated for a second straight month in March and auto sales surged, the latest signs the economy was regaining footing after a brutal winter.
Manufacturing in Asia and Europe finished the first quarter on a weaker note but activity in the United States remained relatively steady, suggesting severe winter weather in North America had only a modest effect on U.S. factories.
Crude rubber stockpiles held at Japanese warehouses rose 1.8 percent to 22,443 metric tons on March 20, according to data from the Rubber Trade Association of Japan.
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.
TECHNICAL VIEW
RUBBER Apr NMCE
Expect to continue the weak bias as long as 14950 cap the upside. A direct dip below 14580 is likely to attract more liquidation pressure towards 14480 followed by 14350 levels for the day.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
14790-14950 |
15400-14350 |
14580-14480 |
|
15320-15500 |
|
14350-14200 |
|
15850/16000 |
|
14000-13850 |
Source: Geojit Comtrade
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