MARKET COMMENTARY
Natural rubber in the Indian market slipped further on Wednesday. RSS4 in the local market was quoted around Rs.131 a kg, its weakest level since early 2010 and similar losses were witnessed in the futures segment as well. Muted demand from the tyre sector, higher imports and bearish trend in the overseas market kept the commodity in the weaker turf. In the overseas market, the commodity remained under pressure as concerns over demand from the top consumer China and speculation of off-loading of stockpiles by Thailand pondered upon overall market sentiments. TOCOM rubber futures, following an initial rise, resumed to decline on Thursday and remained in the vicinity of the one month lows hit last day.
MARKET NEWS
⊳ Rubber Board Chairman Ms. Sheela Thomas has been appointed as the Secretary General of the Association of Natural Rubber Producing Countries (ANRPC).
⊳ China’s natural rubber imports in July stood at 280000 tonnes.
⊳ Thailand plans to reduce plantation area by 100,000 rai (16,000 hectares) a year for 7 years, according to the Office of the Rubber Replanting Aid Fund.
⊳ 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.
⊳ 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 the support of 12800 being held in the previous session mild short covering rallies cannot be ruled out for the day towards 13050-13150 levels. However, it is necessary to clear 13280 to stretch the up-moves. On the other hand, a direct fall below 12800 with considerable volume may attract more selling pressure.
TURNAROUND
| Resistances | LEVELS | Supports |
| 13050/13150 | 13500-13280-12800 | 12800-12750 |
| 13280/13350 | 12650/12500 | |
| 13480/13650 | 12400-12200 |
Source: Geojit Comtrade
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