MARKET COMMENTARY
⊳ A mixed trend was witnessed in the local natural rubber market on Tuesday. In the physical market, RSS4 was hovering near the five year lows while on NMCE, the most active December futures bounced off from the recent lows to culminate the session in green. While demand stayed jaded, a rebound witnessed on the overseas market probably lifted the commodity on domestic bourse. Latex (drc60%) gained as well.
⊳ On Wednesday a rebound is being witnessed in natural rubber prices in the international market. TOCOM rubber futures gained more than one per cent bolstered by weakening yen. Also, traders were eying the International Rubber Tripartite Council meeting tomorrow in Malaysia. SHFE and AFET rose 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 anticipated, a bounce back was witnessed in the previous session and for now, such up moves are likely to face stiff resistance at 11700/11860, which it requires to clear for further upsides. Inability to break and sustain above the same or a direct fall below 11400 will intensify sell offs.
Source: Geojit Comtrade
