MARKET COMMENTARY
⊳ Sentiments were mixed in the local natural rubber market on Wednesday. While RSS4 stayed near Rs.129 a kg in the physical market, directionless moves were witnessed in the futures segment. In volume less trades, the grade culminated rather flat on NMCE. While the underlying broad trend stayed weak, mild gains witnessed in the overseas market probably lend support.
⊳ On Thursday, natural rubber in the major international markets is seen retreating following the rise last day. TOCOM rubber futures dipped weighed down by a stronger yen and falling equities. SHFE and AFET rubber futures followed the suit too. Decline in crude oil impacted the prices too.
MARKET NEWS
⊳ Thailand’s National Council for Peace and Order is likely to delay the sale of 210,000 tonnes of rubber in state-owned stockpiles, caving in to rubber farmers who feared selling the stocks in one go would drive down prices.
⊳ Thailand’s National Council for Peace and Order has approved a budget of 5.94 billion baht for the overhaul of the rubber industry. The measures involve maintaining a stock to stabilise prices, improving planters’ liquidity, developing the rubber market and conducting research and development on rubber products.
⊳ Indonesian natural rubber production likely to miss target owing to prolonged wintering in certain rubber growing area in the country. According to Rubber Association of Indonesia, production may be 6.0% less than the target of 3.2 million tonnes.
⊳ Vietnam will eliminate rubber export tax Oct. 2 according to Vietnam Rubber Association citing circular issued Aug. 18 by finance ministry.
⊳ 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.
⊳ Thailand plans to reduce plantation area by 100,000 rai (16,000 hectares) a year for 7 years.
TECHNICAL VIEW
RUBBER Sep NMCE
While the broad trend stayed bearish, moves were rather direction less in the previous session. For the day, sustained trades below 12650 with volume could drag prices further lower towards 12500- 12400 ranges or more. However, pullbacks stretching beyond 12850 may see a rise to 13000 ranges though it is mandatory to sustain and break above 13050 for some buying to emerge.
TURNAROUND
| Resistances | LEVELS | Supports |
| 12850-12900 | 13050-12850-12650 | 12650/12500 |
| 13050/13150 | 12400/12200 | |
| 13280/13350 | 12000 |
Source: Geojit Comtrade
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