MARKET COMMENTARY
In the week gone by, bearish trend prevailed in the Indian natural rubber market. In the physical market, quotes for RSS4 were hovering near its weakest level in more than two and a half month. Weak fundamentals continued to hurt overall market sentiments, pressurizing prices to move south. Mild rebounds witnessed in the overseas market failed to reflect in the physical prices. However, on NMCE, pullbacks were seen towards the close of the week, trimming weekly losses.
On Monday, natural rubber prices in the overseas market were in red. SHFE as well as AFET rubber futures declined while the trend setting TOCOM exchange remained closed on account of Ocean Day.
MARKET NEWS
Stockpiles monitored by Shanghai Futures Exchange rose 1095 tonnes to 152879 tonnes last week.
Indonesia’s natural rubber production is seen at 3.2 million tonnes in 2014 compared to 3.1 million tonnes produced last year according to the country’s Agricultural Ministry.
Natural rubber imports during the first six months of 2014 rose 58 per cent to 1.61 lakh tonnes.
Kerala State Finance Minister says Rs.10 crore have been enmarked to procure natural rubber and likely to pay Rs.5 per kg more than the daily domestic market price of rubber.
Inventories in Qingdao, China’s main rubber trading hub, drop to 239,000 mt from 250,300 mt as of June 30, according to Qingdao International Rubber Exchange Market.
The Association of Natural Rubber Producing Countries’ 7th Annual Rubber Conference to be held in Kuala Lumpur, Malaysia on 13th October 2014.
Malaysian NR imports down 7.8 per cent in May to 59486 tonnes on MoM basis.
Crude rubber stockpiles held at Japanese warehouses fell 1.6 percent to 20,874 metric tons on June 30, according to data from the Rubber Trade Association of Japan.
TECHNICAL VIEW
RUBBER Aug NMCE
While the broad bearish trend remains intact, it is mandatory to clear 14400 ranges upside to lessen the prevailing weakness. Inability to clear the same may call for higher level selling.
TURNAROUND
| Resistances | LEVELS | Supports |
| 14160-14260 | 14400-13800 | 13900/13800 |
| 14320/14450 | 13700/13500 | |
| 14500/14600 | 13400/13200 |
Source: Geojit Comtrade
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