MARKET COMMENTARY
⊳ Natural rubber in the Indian market were hovering near its weakest level in five years last week. Sentiments stayed feeble as worries over demand continued to pressurize prices despite fall in production. Burgeoning imports too weighed on. In the physical market, RSS4 was quoted around Rs.118 a kg, lowest level since late November 2009 while on NMCE, the benchmark December rubber futures were held in tight ranges near the eight week low hit in the previous week. In the meantime, this commodity in the international market is seen declining as the week’s session commences. On Monday, TOCOM rubber futures retreated following an initial rise to three and a half year high probably as yen gained from the seven year high against the US dollar. SHFE and AFET rubber futures decline as well.
MARKET NEWS
⊳ Rubber inventories in the warehouses monitored by SHFE rose 3.1 per cent to 180234 tonnes last week.
⊳ Thailand, Indonesia and Malaysia to meet on Nov. 20-to discuss plans to set prices together and reduce supply.
⊳ Malaysia’s natural rubber production in September 2014 rose 20.5 per cent or 10,242 tonnes to 60,187 tonnes compared to August 2014. However, on a year-on-year basis, the production showed a decline of 16.7 per cent.
⊳ According to Rubber Board, India’s natural rubber imports in October surged 27.7 percent from a year ago to 36,865 tonnes while consumption in the month rose nearly 2 percent on year to 83,000 tonnes. The country’s production in the month fell 32.6 percent on year to 58,000 tonnes as some farmers skipped tapping after prices fell to their lowest level in five years.
⊳ According to International Rubber Consortium, floods in Thailand’s southern province of Nakhon Si Thammarat have disrupted tapping. This province has 1.5 million rai (593,053 acres) of rubber plantations, 3rd largest in Thailand.
⊳ China’s natural rubber imports in October stood at 300000 tonnes.
⊳ Rubber Mark and Market Fed to buy rubber by paying Rs.5 a kg above the Rubber Board rates.
TECHNICAL VIEW
RUBBER Dec NMCE
As long as the strong support at 11450 remains undisturbed, pullbacks are likely towards 11800/12000 ranges. Yet, it is necessary to clear 12100 to lessen the prevailing weakness. A direct fall below 11450 with volume will intensify bearishness.
Source: Geojit Comtrade
