MARKET COMMENTARY
As TOCOM exchange reopened today after National Foundation Day Holiday, rubber futures on the bourse surged to hit its strongest level in seven and a half month bolstered by a weaker yen that fell to a five week low against the US dollar amidst lean production phase in the major natural rubber growing belt in Asia. However, persisting worries over demand from China limited advances. In the meantime, on Wednesday, natural rubber in the Indian markets declined with NMCE rubber futures slumping more than two per cent. According to trade sources increased arrivals in the market and low off-takes pressurized prices to move down. In the physical market, quotes for RSS4 grade rubber lowered to Rs.125-127 per kg compared to Rs.131 a kg quoted a day earlier.
MARKET NEWS
⊳According to the Rubber Board, natural rubber imports by India jumped 47 per cent in January to 30441 tonnes on year on year basis.
⊳Rubber inventories in the warehouses monitored by SHFE rose 0.1 per cent last week to 164821 tonnes.
⊳Media report says India 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.
⊳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.
TECHNICAL COMMENTRY
RUBBER Mar NMCE
Slippage past 12400-12340 ranges in the previous session has diluted the positive bias and it seems the present momentum has the potential to test 12120-12050 levels before bouncing back. However, a direct rise past 12400 with volumes could lift prices towards 12550/12640.
Source: Geofin Comtrade
