MARKET COMMENTARY
Rubber prices in the spot market ended unchanged, after falling sharply earlier during the week amid sluggish domestic demand. On National Multi Commodity Exchange, the May contract ended at Rs.13957 per 100 kg, up around Rs.81 from the previous close, while June contract ended up Rs.149 at Rs.14233. Rubber futures on TOCOM were higher today in range bound trade as the commodity found buyers at low levels after prices ended lower in the previous session. As well, drop in stockpiles to a four month low in China supported the uptrend. Rubber for October delivery on the Tokyo Commodity Exchange traded up by 4.4 % at 206.6 yen/kg, paring biggest monthly drop since January. Contract for September delivery in Shanghai is up by 195 yuan to 14190 yuan/Mt.
MARKET NEWS
⊳ Growth in emerging Asian countries will be lacklustre this year and contribute less to the global economy, despite signs of recovery in the region’s major trading partners in the West, Reuters polls showed on Friday.
⊳ Rubber inventories in warehouses monitored by the Shanghai Futures Exchange fell 0.5 percent week-on-week, the exchange said on Friday.
⊳ The Tokyo Commodity Exchange launched a new trading platform on May 7 and added a night session between 0800 GMT and 1400 GMT. For rubber, the evening session is 0800-1000 GMT.
⊳ Brent crude futures rose on Thursday, holding above $109 per barrel for a fifth straight session, as a vow by top oil producer Russia to respond if its interests in Ukraine came under attack stoked supply worries.
⊳ Vietnam April rubber exports estimated at 45,000 tonnes up from 43,000 tonnes same period a year ago, as per the export data released by General Statistics Office. Jan-April exports seen at 196,000 tonnes, down 15% yoy.
⊳ Crude rubber stockpiles held at Japanese warehouses fell 0.2 percent to 22,017 metric tons on April 10, according to data from the Rubber Trade Association of Japan.
TECHNICAL VIEW
RUBBER May NMCE
As it convincingly breaks the upside obstacle of 13950, expect to continue the prevailing recovery moves towards 14150 initially followed by 14450.Meanwhile, selling pressure if extends below 13900 probably to call for a choppy trading with mild negative bias.
TURNAROUND
| Resistances | LEVELS | Supports |
| 14150-14450 | 13950-14450 | 13900-13750 |
| 14550-14700 | 13450-13400 | |
| 14800-15150 | 13300-13100 |
Source: Geojit Comtrade
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