MARKET COMMENTARY
Natural rubber in the Indian market inched up on Tuesday. RSS4 in the physical market rose to Rs.118.00 a kg while on NMCE, the most active December rubber futures gained more than one per cent. Sentiments were firm tracking gains in the major overseas market. However, advances were probably limited as worries over demand weighed on.
On Wednesday, natural rubber in the overseas market is trading in red. On TOCOM, the commodity reversed initial advances and shed about 1.5 per cent. SHFE and AFET rubber futures declined too. While upbeat US GDP data have had improved the sentiments, decline in crude oil prices probably weighed on.
MARKET NEWS
⊳ Thai Farm Ministry will form a joint committee with rubber farmers to discuss the industry’s short and long- term problems according to Amnuay Patise, deputy minister.
China tire companies urges the government to take measures against anti-dumping and countervailing duties imposed on tire imported from China by the US.
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.
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 COMMENTRY
RUBBER Dec NMCE
While prices have breached the resistance of 11700, it is mandatory to sustain above to the same for a rise to 11860 followed by 11950/12050. Else, dips are likely. However, major selloffs may be witnessed only below 11400 ranges.
Source: Geofin Comtrade
