MARKET COMMENTARY
In the week gone by, natural rubber in the Indian market continued to be under the stranglehold of bears. Weakness in the overseas natural rubber market, high inventories along with poor subdued demand from the tyre sector pondered upon the overall market sentiments, pressurizing prices to move south. In the physical market, towards the close of the week, RSS4 was quoted at its weakest level since early 2010. NMCE rubber futures declined as well, posting losses for the third consecutive week.
Weakness prevailed in the key international natural rubber market. AFET and SHFE rubber futures declined while TOCOM rubber futures were seen paring its initial gains on Monday. In the meantime Indonesian and Malaysian market are on holiday on account of Eid-UL-Fitri.
MARKET NEWS
Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 0.2 percent to153,255 tonnes.
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 trend stays bearish, mild short covering moves are likely towards 13840/14000 ranges before resuming its downtrend. Now, a rise above 14200 is mandatory to lessen the prevailing weakness.
TURNAROUND
| Resistances | LEVELS | Supports |
| 13840/13950 | 14200-13950-13500 | 13650/13500 |
| 14050/14160 | 13400/13200 | |
| 14260-14320 | 13100-13050 |
Source: Geojit Comtrade
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