MARKET COMMENTARY
Weak fundamentals continued to pressurise natural rubber in the Indian market. On Wednesday, the commodity was seen inching lower, dragged down by weak trend in the overseas market along with poor demand from the tyre sector. On NMCE, RSS4 lost nearly one per cent while in the physical market, quotes dipped to Rs.137 a kg. Despite incessant rains in the major natural rubber growing areas, lacklustre demand, coupled with higher imports weighed on overall market sentiments. In the meantime, on Thursday, natural rubber prices are seen rising after the recent declines. TOCOM rubber futures reversed initial losses and inched higher. Rise in crude oil prices along with a decline in global natural rubber output may have probably lent support to prices.
MARKET NEWS
Global natural rubber output from key growers shrinks to 5.83m mt in first seven months from yr-ago period according to Association of Natural Rubber Producing Countries.
Natural rubber imports by India in July rose 14.8 per cent to 36997 tonnes on YoY basis, according to the Rubber Board.
Thai Ministry of Agriculture and Agricultural Cooperatives to ask the Natural Rubber Policy Committee this Friday for 30 billion baht budget to increase the utilisation of natural rubber from 10 percent to 30 percent of four million tonnes of annual yield.
Thailand’s military government to encourage farmers in the world’s biggest rubber producer and exporter to cut down more rubber trees in a bid to restrict supply to help shore up prices.
NR inventories in Qingdao, China’s main rubber trading hub, drop to 214,300 mt from 239,000 mt as of July 31, according to Qingdao International Rubber Exchange Market.
Rubber exports from Thailand rose 9.8 per cent to 1.7 million tonnes during January-June 2014.
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 Sep NMCE
With support near 13460 being held, mild bounce back may be seen towards 13600 initially followed by 13760. However, it is mandatory to clear 13860 for further rise. Inability to clear the same or a direct fall below 13460 will see bears turning more active.
TURNAROUND
| Resistances | LEVELS | Supports |
| 13600-13700 | 13860-13470 | 13460/13370 |
| 13760/13860 | 13200/13050 | |
| 14020-14100 | 12800 |
Source: Geojit Comtrade
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