MARKET COMMENTARY
⊳ Worries over demand continues to pound natural rubber in the domestic as well as in the overseas market. On Tuesday, natural rubber prices slumped in the major international market as weak economic indicators from China intensified apprehensions over demand. SHFE rubber futures slumped more than four per cent while on TOCOM the commodity slipped about two per cent, moving away from the recent highs. In the meantime, traders are also eying the meeting of top natural rubber producing countries slated on Thursday.
⊳ In the Indian market, RSS4 continued its downtrend. In the physical market the grade was quotes about Rs.117.50 a kg while on NMCE, it lost more than one per cent. Declines in overseas market amidst low demand added further pressure on prices.
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
With the support at 11450 being breached last day, the weakness has intensified. However, a bounce back witnessed from the 11400 ranges opens room for the same to extend possibly to 11700 ranges or more to 11860. A direct fall below 11400 is likely to see prices testing 11200/11050 or more.
Source: Geojit Comtrade
