MARKET COMMENTARY
⊳Natural rubber prices inched up in the local market on Wednesday, buoyed by advances in the overseas natural rubber market. In the physical market, quotes for RSS4 rose to Rs.122 a kg, while in the futures segment, it culminated the previous day’s session nearly one per cent up. In the international market, meanwhile, the commodity is seen declining on Thursday after rising for the last three consecutive days. Overnight declines in crude oil coupled with a firm yen probably prompted investors to book profits. However, concerns over supplies are likely to lend lower level support as the market has entered a lean production phase.
MARKET NEWS
⊳Media report saysIndia likely to raise import duty on natural rubber to 30 per cent from 20 per cent to protest the domestic growers from cheap imports and check further decline in prices. The hike may to be announced in the next Union Budget.
⊳Crude rubber inventories at Japanese ports stood at 12976tonnes as of Jan. 20, down 0.5 percent from 10 days earlier, data from the Rubber Trade Association of Japan showed.
⊳Rubber inventories in the warehouses monitored by SHFE stayed unchanged last week at 164681 tonnes.
⊳the 2nd edition of India Rubber Meet will be held on 04 and 05 March 2015 at Le Meridian Convention Center, Kochi and will be inaugurated by Hon’ble Minister of Commerce and Industry Ms. NirmalaSitharaman.
⊳The National Council for Peace and Order (NCPO) and the government will instruct the Government Savings Bank and Krung Thai Bank to provide business operators with soft loans worth 25 billion baht ($768 million) to buy natural rubber from farmers, the Bangkok Post reported, quoting Deputy Prime Minister and Defence Minister PrawitWongsuwon.
⊳The United States is set to slap more duties on imports of tires from China after the Department of Commerce determined they were sold too cheaply in the United States.
⊳Ivory Coast’s natural rubber output for 2014 reached 311,429 tonnes, exceeding a forecast of 296,456 tonnes, the head of the natural rubber association said.
⊳Kerala Chief Minister and Opposition Leader submitted a memorandum before the Prime Minister, urging the latter to take necessary steps to solve the problems faced by rubber sector.
TECHNICAL COMMENTRY
RUBBER Mar NMCE
The pullbacks being witnessed currently is likely to continue, possibly towards 12260-12300 once it clears the immediate resistance of 12140. However, it is mandatory to break and sustain above 12300 to bring about mild positive sentiments. Else range bound moves inside 12300-11830 may be seen.
Source: Geofin Comtrade
