MARKET COMMENTARY
⊳ RSS4 in the local market traded steady while latex prices continues to rise. On Monday, the grade traded firm near Rs.117.50 a kg in the spot market while on NMCE it was held in tight ranges. Lack of directive moves from the international market amidst mixed fundamentals weighed on overall market sentiments.
⊳ Natural rubber in the international market is seen inching up on Tuesday. TOCOM exchange reopened today after an extended weekend holiday. The benchmark May rubber futures on the exchange is seen edging higher buoyed by weaker yen and after China slashed the interest rate to prop up economic growth. In the meantime, SHFE rubber futures are seen swinging between positive and negative turfs.
MARKET NEWS
⊳ The United States is set to slap duties on imports of tires from China after the Department of Commerce found that the tires are produced using unfair government subsidies.
⊳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.
⊳ 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
Range bound moves inside 11400-11700 is in progress and requires a break out from the either the sides for further directional moves.
Source: Geojit Comtrade
