MARKET COMMENTARY
Sentiments stayed feeble in the Indian natural rubber market. On NMCE, the benchmark September rubber futures was seen retreating on Thursday following a brief rebound while in the physical market RSS4 traded rather steady with a negative bias. Weak fundamentals continue to pressurize prices to move south, although concerns that further declines in prices may affect production lend some support. In the meantime, natural rubber prices in the overseas market are seen inching up on Friday. TOCOM rubber futures are probably on its course to post biggest weekly gains since June. While positive equities and a weaker yen lend support, undercurrents still stayed weak on concerns over economic growth in the leading economies.
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
A consolidation inside 13000-12700 ranges is in progress and a breakout from either the side with volume is mandatory for further directional moves.
TURNAROUND
|
Resistances |
LEVELS | Supports |
|
12950/13050 |
13000-12700 | 12700-12650 |
| 13150/13280 |
12500/12400 |
|
| 13350/13480 |
12200-12150 |
Source: Geojit Comtrade
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