MARKET COMMENTARY
As all eyes are on International Tripartite Rubber Council meeting being held in Malaysia today, natural rubber is trading rather flat in the international market on Thursday. TOCOM rubber futures were rather flat while SHFE rubber futures inched up as traders await the outcome of the meeting in which officials from Cambodia, Vietnam, Laos and Myanmar will be attending. In the meantime, advances witnessed in the natural rubber in the major international market buoyed the commodity on the domestic front too. On Wednesday, RSS4 in the physical market traded firm near Rs.117.50 a kg. On NMCE too, the grade ended flat following mild upticks.
MARKET NEWS
⊳ Crude rubber inventories in Japan decline 4.7 per cent to 10394 tonnes from ten days ago.
⊳ 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.
TECHNICAL VIEW
RUBBER Dec NMCE
While up moves to 11700 cannot be ruled out, it is mandatory to break and sustain above 11860 to continue up swing. Inability to break and sustain above the same or a direct fall below 11400 will intensify sell offs.
Source: Geojit Comtrade
