MARKET COMMENTARY
⊳ While the broad trend stays weak, sentiments stays mixed. In the physical market on Wednesday, RSS4 was hovering near Rs.125 a kg buoyed by gains witnessed in the overseas market and as supplies thinned out. NMCE rubber futures rose too, gaining nearly three per cent after posting losses in the previous day. However, concerns over demand continued to haunt the markets capping gains.
⊳ On Thursday, natural rubber in the overseas market moved to a negative turf. TOCOM rubber futures, following an initial rise to a week’s high, is seen retreating weighed down by weak economic indicator from China. However, Japanese currency weakening against the US dollar manages to restrict losses. SHFE and AFET rubber futures declined as well.
MARKET NEWS
⊳ Inventories in Qingdao, China’s main rubber-trading hub, fell to 192,200 mt yday from 217,400 mt on Aug. 29, according to Qingdao International Rubber Exchange Market.
⊳ Vietnam’s rubber exports rises 12 per cent to 113922 tonnes in August on MoM basis according to the nation’s General Customs Department.
⊳ Thai rubber farmers defer planned protest after minister offers talks.
⊳ Rubber inventories in the warehouses monitored by SHFE rose 100 tonnes to 166248 tonnes last week.
⊳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.
⊳ According to Thailand’s Office of Agricultural Economics NR 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.
⊳ India’s NR production in August declined 26% to 51000 tonnes on YoY basis while consumption registered a rise of 4.2% to 85000 tonnes. Imports declined as well to 42499 tonnes compared to 43221 tonnes imported during the same period last year.
TECHNICAL VIEW
RUBBER Oct NMCE
It is mandatory to clear and sustain above the immediate but strong resistance of 12250 to see positive moves. Else, it may succumb to higher level selling and may call for 12050/11800.
TURNAROUND
| Resistances | LEVELS | Supports |
| 12250/12340 | 12250-11800 | 12050/11900 |
| 12500/12650 | 11820/11650 | |
| 12740/12860 | 11550/11450 |
Source: Geojit Comtrade
Download this report (full content – PDF file) here
