MARKET COMMENTARY
⊳Firm moves were seen in the local natural rubber market last week. On NMCE, the commodity ended in green after posting losses in the week earlier while quotes in the physical market edged up buoyed by positive moves in the overseas market and comments by the Kerala Chief Minister on rubber procurement. However, lingering worries over off-take by the tyre sector continued to weigh on the overall market sentiments.
⊳As the week’s session commences, natural rubber is trading in red in the international market. In lacklusture trades, TOCOM rubber futures ticked lower on Monday. Absence of China in the market on account of week-long Lunar New Year holidays pondered on the markets as investors attention is now shifting towards the IRTC and IRCo meeting scheduled to later this week in Indonesia.
MARKET NEWS
⊳National Multi Commodity Exchange of India plans to launch 23 auction-based forwards contracts in farm commodities in two phases starting this month. Auction bases forwards contracts in rubber, castor seed and mustard will be launched in February.
⊳ITRC and IRCo will have a meeting with Cambodia, Lao DPR, Myanmar and Vietnam on 26 February 2015 in Bandung, Indonesia. The main objective of the meeting is to consider how the seven NR producing countries could work together in order to manage NR production and marketing in the future.
⊳Kerala Chief Minister OommenChandy has said that the government will consider direct procurement of rubber as the benefits of the rubber package announced by the government are being cornered by middlemen.
⊳Thailand’s government will begin a second round of rubber buying from the market through a 6 billion baht ($184.22 million) buffer fund, the country’s farm minister said.
⊳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.
⊳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.
TECHNICAL COMMENTRY
RUBBER Mar NMCE
Even as the sentiments stays sanguine, it is mandatory to break and sustain over 12900-13000 ranges for continuation of buying momentum. Else, corrective dips may be seen towards 12500-12300 levels and slippage past 12200 will defuse the positive bias.
Source: Geofin Comtrade
