MARKET COMMENTARY
Rubber prices in the spot market traded with a negative bias amid sluggish domestic demand. Weak sentiments in the international market too weighed down the price trend. Rubber futures on National Multi Commodity Exchange ended down with most active May contract ending lower tracking the bearish sentiment in the domestic and international market. As well, rubber for September delivery on Tokyo Commodity Exchange end at 201.2 yen/kg, lowest settlement for most active contract since October 2009. Contract for September delivery on Shanghai Futures Exchange gained from yesterday, close to 14070 yuan/mt. Prices reached its lowest level since 2009 yesterday. However, dip in prices may be attracting buyers as demand for tyres is expanding globally on rising auto sales.
MARKET
⊳ China’s factory activity shrank for the fourth straight month in April, signalling economic weakness into the second quarter, a survey showed on Wednesday, although the pace of decline eased helped by policy steps to arrest the slowdown.
⊳ U.S. crude futures held near a two-week low below $102 a barrel in early Asian trade on Thursday after oil stockpiles in the world’s biggest oil consumer rose last week to their highest levels since records began in 1982.
⊳ European car sales jumped 10 in March, advancing 7th consecutive month, according to European Automobile Manufacturer’s Association.
⊳ U.S. home resale fell to their lowest level in more than 1-1/2 years in March, data showed on Tuesday, but there were signs a recent downward trend that has plagued the housing market may be drawing to an end.
⊳ U.S. crude futures fell more than $2 on Tuesday ahead of data expected to show that inventories in the world’s top oil-consuming nation have risen close to record highs.
⊳ According to provisional data with the Rubber Board of India, the country exported only 5,381 tonne of NR in 2013-14 against 30,594 tonne in 2012-13. The fall is as high as 82%. And the NR imports surged to 324,467 tonne from 217,364 tonne in 2012-2013.
TECHNICAL VIEW
RUBBER May NMCE
A slight recovery may be seen, but is unlikely to continue unless it convincingly breaking the stiff resistance of 13950. A direct rise above 13950 could take prices higher, possibly towards 14200. Else, expect a choppy trading session with mild negative bias.
TURNAROUND
| Resistances | LEVELS | Supports |
| 13800-13950 | 13950-13400 | 13450-13400 |
| 14150-14400 | 13300-13100 | |
| 14750-15150 | 12800-12550 |
Source: Geojit Comtrade
Download this report (full content – PDF file) here
