MARKET COMMENTARY
⊳Advances witnessed in the overseas natural rubber market amidst limited supply bolstered natural rubber prices in the local market. On Monday, RSS4 in the physical market edged higher to Rs.115 a kg while on NMCE, the most active January rubber futures culminated the session more than 1.5 per cent up. However, lingering worries over demand and declining crude oil prices continued to restrict gains.
⊳ On Tuesday, natural rubber retreated following the previous day’s advances in the major international market. TOCOM rubber futures inched lower and so was SHFE and AFET rubber futures after China manufacturing PMI showed an contraction in December. Tumbling crude oil prices and strengthening yen weighed on as well.
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⊳ Kerala chief minister Oommen Chandy has convened on December 18 a crucial meeting with the major tyre companies, in a frantic effort to prop the domestic natural rubber price.
⊳ 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 Stabilization 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 inventories in the warehouses monitored by SHFE 5.7 per cent 147721 tonnes last week.
⊳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
11560 pose to be the immediate resistance, which it requires to clear to continue the buying sentiments being seen currently. Else a retreat to 11380/11260 may be seen. However, another round of sell-offs may be seen only below 11025.
Source: Geofin Comtrade
