MARKET COMMENTARY
⊳Natural rubber market stayed under the strangle hold of bears last week. Quotes for RSS4 hit a fresh five year low in the local spot market as demand continued to be subdued. Steep plunges in crude oil and weak trend in the major overseas natural rubber market too weighed on the sentiments. However, limited arrivals to the market lend lower level support.
⊳ In the international market on Monday, natural rubber is seen inching higher, stretching last session gains probably buoyed by moves by Thailand to buy rubber. Despite weak crude oil prices, TOCOM rubber futures jumped more than four per cent while SHFE was up by more than two per cent.
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⊳Indian Rubber Growers Association has urged an urgent intervention of the state and the central government to initiate steps to save rubber growers. In the mean time, the growers association comprising UPASI, APK, IRGA etc have filed a petition under the Provisions of Safeguard before the Directorate of Safeguards, New Delhi to protect the domestic rubber growers from un-controlled and unrestricted imports.
⊳ Kerala State Finance Minister in a letter to the Union Commerce Minister has sought Rs.1000 crore from the Center’s Price Stabilisation Fund to provide relief to the rubber growers.
⊳ Malaysian Plantation Industries and Commodities Minister says Malaysia, Indonesia and Thailand are doing what it takes to ensure production does not exceed current world demand for rubber and urged ANRPC members to hold a ministerial level meeting.
⊳Rubber investories in the warehouses monitored by SHFE 5.7 per cent 147721 tonnes last week.
⊳Crude rubber inventories at Japanese ports stood at 10307tonnes as of Nov. 30, down 5.3 pct from 10 days earlier, according to a data from the Rubber Trade Association of Japan.
⊳Thai government and at least 7 exporting companies plan to form fund worth more than 400m baht to buy rubber on Agricultural Futures Exchange of Thailand according to PongsakKerdvongbundit, managing director of Von Bundit.
⊳Thai government to buy rubber above market rates to push prices towards 60baht/kg and may thus stockpiles about 400000 tonnes.
⊳According to Quinrex, China state stockpiler bought 87500 tonnes of rubber in an auction held last Tuesday.
TECHNICAL COMMENTRY
RUBBER Jan NMCE
With resistance at 11250 being breached, the bounce back will probably continue towards 11400-11500 ranges. However, unexpected fall below the recent lows will intensify weakness.
Source: Geofin Comtrade
