MARKET COMMENTARY
A mixed trend was witnessed in the local market on Wednesday. In the physical market, RSS4 grade rubber ruled flat near Rs.137 a kg in lacklustre trades. Meanwhile, on NMCE a rebound was witnessed during the afternoon trading session probably on short covering and the commodity ending more than 1.5 per cent up. However, overall activities in the market stayed sluggish and demand from the tyre sector remained subdued.
On Thursday, sentiments seemed to be muddled in the overseas market. AFET and SHFE rubber futures were in red while TOCOM rubber futures are seen inching up. The benchmark January rubber futures on TOCOM are seen rising supported by upbeat GDP data from the US and on weak yen. Heavy rains in Thailand may have lent support too. However, concerns over demand from the top consumer China weighed on.
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
The rebound witnessed in the previous session is likely to continue towards 14050 or more to 14200 ranges once it clears the immediate resistance of 13950. However, it is mandatory to break and sustain above 14400 ranges to lessen the prevailing weakness. Alternatively, a direct fall below 13700 will strengthen weakness.TURNAROUND
| Resistances | LEVELS | Supports |
| 13950/14050 | 14200-13950-13700 | 13800/13700 |
| 14160/14260 | 13600/13500 | |
| 14380/14500 | 13400/13200 |
Source: Geojit Comtrade
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