MARKET COMMENTARY
Following a sharp rebound last day, natural rubber in the overseas market are clinging on to the gains on Wednesday. TOCOM rubber futures are hovering near one month high hit last day supported by stronger equities and weak yen. However, weak industrial production data from Japan weighed on. SHFE and AFET rubber futures dipped as well. Also, investors are probably staying on the sidelines ahead of the FOMC rate announcement and GDP from the US that is scheduled to release later today. Meanwhile, activities were sluggish in the local spot market and NMCE stayed closed on Tuesday owing to Ramzan holiday in the state. Looking ahead, while gains witnessed in the overseas market is likely to support the sentiments in the local market, though the underlying weak fundamentals is likely to maintain the prevailing selling pressure.
MARKET NEWS
Rubber exports from Thailand rose 9.8 per cent to 1.7 million tonnes during January-June 2014.
Crude rubber inventories at Japanese ports stood at 19,188 tonnes as of July 20, down 2.1 percent from 10 days earlier, according to Rubber Trade Association of Japan.
Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 0.2 percent to153,255 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.
TECHNICAL VIEW
RUBBER Aug NMCE
Following the recent decline, mild short covering moves towards 13800 or more is likely. However, a direct fall past 13600 with considerable volume may call for 13500 or more.
TURNAROUND
| Resistances | LEVELS | Supports |
| 13740/13860 | 14200-13950-13500 | 13600/13500 |
| 13950/14050 | 13400/13200 | |
| 14160/14260 | 13100-13050 |
Source: Geojit Comtrade
Download this report (full content – PDF file) here
