MARKET COMMENTARY
While the broad underlying trend stayed feeble, sentiments were rather muddled in the local natural rubber market on Tuesday. In the spot market, RSS4 ruled flat near Rs.130 a kg while on NMCE, the commodity ended marginally up. Amidst weak market fundamentals, a rebound witnessed in the overseas market probably arrested further declines. In the mean time, on Wednesday, natural rubber prices in the major overseas market are trading steady to negative. TOCOM rubber futures dipped after rising last day. SHFE and AFET rubber futures followed the suit too. Sentiments are mixed as investors weighed upon the prospects of decline in supply amidst falling oil prices and lacklusture demand. With natural rubber prices plunging to multi year lows, production may come down as farmers may reduce tapping owing to unattractive prices.
MARKET NEWS
⊳ Crude rubber stockpiles held at Japanese warehouses fell 4.7 percent to 17,505 metric tons on Aug. 10, according to data from the Rubber Trade Association of Japan.
⊳ The global surplus of natural rubber will shrink 46 percent in 2015 as demand expands and farmers reduce tapping because of decreasing prices, according to the International Rubber Study Group.
⊳ Rubber Board Chairman Ms. Sheela Thomas has been appointed as the Secretary General of the Association of Natural Rubber Producing Countries (ANRPC).
⊳ 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.
⊳ 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.
TECHNICAL VIEW
RUBBER Sep NMCE
While the broad trend stays bearish, a consolidation inside 12700- 13000 ranges seems to be in progress and requires a break out from the either the sides for further directional moves.
TURNAROUND
| Resistances | LEVELS | Supports |
| 12950/13050 | 13050-12700 | 12700-12650 |
| 13150/13280 | 12500/12400 | |
| 13350/13480 | 12200-12150 |
Source: Geojit Comtrade
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