MARKET COMMENTARY
⊳ As the week’s session culminates, natural rubber in the international market is seen declining. TOCOM rubber futures shed about two per cent following an initial rise. Japanese yen strengthening against the US dollar and lack of details on the export cut in the International Rubber Tripartite Council meeting yesterday weighed on the overall market sentiments. AFET rubber futures too inched lower while SHFE rubber futures are seen swinging between positive and negative turfs.
⊳ On Thursday, natural rubber traded firm in the local market. While latex (drc60%) continued to rise, RSS4 traded steady near five year lows in the spot market. On NMCE, the grade ended rather flat following some upticks. Positive moves in the overseas market lend firm support.
MARKET NEWS
⊳ The International Rubber Tripartite Council has decided to set up a regional rubber market in 18 month to stabilise natural rubber prices. In the Council meeting, it was also decided to cut exports from next year to control supply and bolster prices.
⊳ 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.
TECHNICAL VIEW
RUBBER Dec NMCE
11700 pose to be immediate resistance which it requires to clear to see an extension to 11860. However, 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
