MARKET COMMENTARY
Natural rubber prices were bound south in the Indian market on Tuesday, dragged down by poor demand and higher imports. In the physical market quotes for RSS4 grade rubber slipped to three month low. NMCE rubber futures posted losses as well. Meanwhile, with sustained declines in natural rubber prices, the Indian Rubber Growers Association has urged the Commerce Ministry to ban natural rubber imports through advanced licence temporarily and also to raise the import duty on rubber goods. Downtrend prevailed in the overseas natural rubber market as well. Overall sentiments stayed feeble, though commodity was seen trading in narrow ranges in the major overseas market. Investors are probably awaiting the release of manufacturing data from China, scheduled to release on Thursday for further directional moves.
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
The broad bearish trend remains intact and slippage past the support of 13800 with considerable volume may see another round of selloff probably to 13500 ranges. However, mild short covering cannot be ruled out if 13800 ranges is held downside.
TURNAROUND
| Resistances | LEVELS | Supports |
| 14050/14160 | 14400-14050-13800 | 13800/13700 |
| 14260-14320 | 13500/13400 | |
| 14450-14500 | 13200-13100 |
Source: Geojit Comtrade
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