MARKET COMMENTARY
A considerable decline in benchmark rubber futures on the National Multi Commodity Exchange of India on Friday limited the gains made in the spot markets. The RSS-4 grade rubber ended marginally lower at Rs.141 per kg. Moreover, the recent fall in prices has drawn some bargain hunters into the market. However, despite the declines last week, spot rubber prices are still at a premium compared with the international market. Hence, tyre makers, the top consumers of rubber, are still heavily dependent on imports to fulfil their requirements, thereby denting local demand. Furthermore, market holidays in Japan on Monday and Tuesday is likely to weigh on the price trend for the days ahead.
MARKET
⊳The Agriculture and Cooperatives Ministry of Thailand will sell 220,000 tonnes of stockpiled rubber as soon as possible, ahead of the new harvest season, to avoid further long-term losses, caretaker Agriculture Minister Yukol Limlaemthong said on Friday.
⊳Crude rubber inventories at Japanese ports stood at 21,948 tonnes as of April 20, down 0.31 percent from 10 days earlier, data from the Rubber Trade Association of Japan showed last week, marking the first decline since last October.
⊳ 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.
TECHNICAL VIEW
RUBBER June NMCE
The prevailing bearish outlook is likely to extend and test 13950 initially, but breaking the same is least expected in the immediate run. A direct rise above 14750 with volume would be required to attract positive bias in the counter.
TURNAROUND
| Resistances | LEVELS | Supports |
| 14450-14660 | 13950-14700 | 14200-14050 |
| 14750-14900 | 13950-13800 | |
| 15150-15400 | 13650-13300 |
Source: Geojit Comtrade
Download this report (full content – PDF file) here
