![[Geojit Comtrade] Daily report on Natural Rubber: December 4, 2012](https://img.globalrubbermarkets.com/2024/08/geojit-comtrade-daily-report-on-natural-rubber-december-4-2012.jpg?fit=336%2C221&ssl=1)
![[Geojit Comtrade] Daily report on Natural Rubber: December 4, 2012](https://img.globalrubbermarkets.com/2024/08/geojit-comtrade-daily-report-on-natural-rubber-december-4-2012.jpg?resize=336%2C221&ssl=1 "[Geojit Comtrade] Daily report on Natural Rubber: December 4, 2012")
MARKET COMMENTARY
- Sentiments stayed bearish in the local natural rubber market, weighed down by lack of buying interest amidst the peak production period. According to reports, concerns over the quality of the domestically available rubber are keeping demand from the major consuming industry muted even as arrivals are trickling in. Extending the previous week’s losses, RSS4 grade rubber dwindled in the physical market hitting a fresh 26 month lows. NMCE rubber futures too declined, with the near month December rubber futures shedding over one per cent.
- In the global market, natural rubber is seen declining on Tuesday after rising in the previous session. TOCOM rubber futures retreated from its five week high tracking moves in equities and crude oil following a weak manufacturing data from US. However, a robust US auto sales data provided firm support.
TECHNICAL VIEW
- US auto sales climbed 15 per cent in November to 1.14 million vehicles.
- According to China Rubber Industry Association, China’s total tire output will increase 5.9% to 483m pieces in 2012.
- Crude rubber inventories at Japanese ports eased from two month high earlier to 6520 tonnes by November 20 from 6739 tonnes 10- days before, according to Rubber Trade Association of Japan.
- Rubber inventories in the warehouses monitored by SHFE rose 3.1 per cent to 93116 tonnes last week.
- According to ANRPC, China’s Jan.-Nov. consumption rose 6.7% to 3.51million tonne and its natural rubber consumption this year is anticipated to be 3.83 million tonne from 3.77million tonne.
- Rubber stocks held by Thai Govt stand at 170000 tonnes and are expected to rise to 410000 tonnes by March-end.
- According to Vietnam’s General Statistics Office, November rubber exports may drop 25% on YoY basis to 95,000 tonnes
TECHNICAL VIEW
RUBBER Jan NMCE
Following an initial pullback, prices were seen resuming its downtrend in the previous session, breaking the support at 16740. While there is room for further downsides, prices are approaching towards the falling trend line support near 16400, which if held, may see a bounce back possibly to 16960 or more to 17100-17200 levels. However, it requires clearing the resistance at 17200 convincingly to lessen the prevailing negative bias. Slippage past 16400 regions may call for 16200 or more.
Source: Geojit Comtrade
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