MARKET COMMENTARY
Rubber prices in the spot market ended lower on Friday, tracking the benchmark futures on National Multi Commodity Exchange. Extremely sluggish demand for the commodity from consumers and tyre makers has weighed on prices. Rubber futures on the Tokyo Commodity Exchange traded lower due to concerns over a supply glut in the market following reports by Thailand agriculture minister that the government is planning to sell its 200000 tonnes rubber stockpile. Meanwhile, a converse report by the International Rubber Consortium that Thailand hasn’t decided yet on the rubber stockpiles may limit the further fall in prices. The benchmark September contract on the TOCOM was near its Intraday low at 221.6 yen per kg, down 1.5 yen from the previous close.
MARKET NEWS
⊳China will probably need to ease monetary policy for the first time in two years in coming months to prevent the economy from losing too much momentum, according to economists who doubt the “mini stimulus” announced so far this year can do the job.
⊳Rubber inventories in warehouses monitored by the Shanghai Futures Exchange fell 3.0 percent week-on-week, the exchange said on Friday.
⊳Production from countries representing 93% of global supply may drop 5.5% in March to 749,200 tonnes as growers reduce tapping, responding to low prices, said Association of Natural Rubber Producing Countries.
⊳FMC has permitted NMCE to launch rubber mini contracts of 100 kg, according to the recent circular.
⊳Amid signs of economic concerns, China acted for the first time this year to steady its stumbling economy by cutting taxes for small firms and announcing plans to speed up the construction of railway lines earlier this week.
⊳The top five automakers in the United States on Tuesday reported higher March sales, beating forecasts and raising expectations April could show an even stronger sales rebound after a long winter.
TECHNICAL VIEW
RUBBER Apr NMCE
Weak bias persists, but a direct rise above the immediate and minor upside obstacles of 14640 is likely to call for mild recovery rallies. However, such moves are least anticipated to move past 14950 levels. Conversely, a direct dip below 14450 expects to attract more bearish actions in the counter.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
14790-14950 |
15400-14350 |
14450 |
|
15320-15500 |
|
14350-14200 |
|
15850/16000 |
|
14000-13850 |
Source: Geojit Comtrade
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