MARKET COMMENTARY
Natural rubber prices edged down in the Indian market on Tuesday. In the physical market, RSS4 grade rubber was quoted around Rs.114.50 a kg compared to Rs.115 a kg in the previous day. Dips were witnessed on the futures segment as well. Decline seen in the major overseas market coupled with jaded demand weighed on though limited supplies to market lend lower level support. In the mean time, on Wednesday, natural rubber is trading in green in the major international market. However, lingering worries over demand from China and declining crude oil prices weighed on overall market sentiments.
MARKET NEWS
⊳China to raise the cap for rubber import tariff to 1500yuan a tonne from the present 1200 yuan a tonne with effect from January 01.
⊳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.
TECHNICAL COMMENTRY
RUBBER Jan NMCE
The corrective dips witnessed in the last trading session were held near 11300 ranges. Extension of such moves may be seen only below -11260-which if held downside could call for brief pullbacks but it is mandatory to break and sustain above 11560 to continue the buying momentum.
Source: Geofin Comtrade
