MARKET COMMENTARY
Natural rubber remained under pressure. On Thursday, RSS4 in the physical market was hovering near Rs 121 a kg, while directionless moves were witnessed in the futures segment amidst steep decline in volume. However, the commodity managed to culminate the session in green. Investors were probably waiting for fresh cues for further directional moves. In the meantime, natural rubber prices are seen rebounding in the overseas market as the week’s session culminates. TOCOM rubber futures rose more than 1.5 per cent on Friday even though it is probably poised to end the week’s session in loss. Weakening yen against the US dollar lend support. SHFE and AFET rubber futures were seen pulling back as well.
MARKET NEWS
⊳India’s Commerce Minister says national policy on rubber is being formulated and a stakeholders meeting will be organised soon on issues concerning the rubber industry.
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⊳ According to Thailand’s Office of Agricultural Economics natural rubber production in Thailand is likely to rise to 4.58 million tonnes from 4.38 million tonnes as tapping area increased in the country’s north and north-eastern provinces.
⊳ Rubber growers plan to disrupt production and shipment of top exporters in response to price slump says Perk Lertwangpong, president of Rubber Holders Cooperatives Federation of Thailand.
⊳ India’s natural rubber production in August declined 26 per cent to 51000 tonnes on year on year basis while consumption registered a rise of 4.2 per cent to 85000 tonnes. Imports declined as well to 42499 tonnes compared to 43221 tonnes imported during the same period last year.
⊳Thailand to increase area in which it will cut down aging trees by 33% to 400,000 rai (64,000 hectares) a year in season starting Oct., says Prasit Meadsen, acting director of Office of the Rubber Replanting Aid Fund.
⊳ Thailand’s Bank for Agriculture and Agricultural Cooperatives to lend 15 billion bhat to rubber farmer groups to build stockpiles and increase processing.
TECHNICAL VIEW
RUBBER Oct NMCE
Mild pullbacks witnessed in the previous session are likely to continue, though it is mandatory to clear 11970 to see an extension to such up-moves. Else, likely range bound moves inside 11970- 11450 may be seen and slippage past 11450 may probably induce another round of sell-off.
TURNAROUND
| Resistances | LEVELS | Supports |
| 11800/11970 | 11970-11450 | 11550/11450 |
| 12100/12250 | 11350/11250 | |
| 12340/12500 | 11100/11050 |
Source: Geojit Comtrade
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