MARKET COMMENTARY
⊳Sentiments stayed muddled in the local natural rubber market on Tuesday. On NMCE, the commodity rebounded following an initial fall and ended more than one per cent high while in the physical market it was quoted lower. Subdued demand and decline in natural rubber in the overseas market weighed on. Still, limited arrivals lend firm support. Also, investors are eying certain key upcoming events like Union Budget, IRTC and IRCo meeting etc for fresh cues. In the mean time, positive moves are being witnessed in the major overseas market on Wednesday. SHFE exchange reopened today after the Lunar New Year holidays. Sentiments were largely upbeat following the comments from the US Fed chief and a relatively upbeat manufacturing PMI data from China. However, caution prevailed in the market ahead of the IRTC and IRCo in Indonesia meeting tomorrow.
MARKET NEWS
⊳ Crude rubber inventories at Japanese ports stood at 12,895 tonnes as of Feb. 10, down 2.5 percent from the last inventory date, data from the Rubber Trade Association of Japan showed.
⊳TOCOM February rubber futures expired on Monday with 272lots being delivered compared to 335 lots in the previous month.
⊳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.
TECHNICAL COMMENTRY
RUBBER Mar NMCE
The late rebound seen towards 12650 ranges yesterday have rejuvenated the sanguinity and the momentum could extend towards 12800-12900 levels. Still, 13000 could act as a stiff resistance, which is mandatory to be cleared for further upsides. Alternatively, slippage past the support of 12450 could again dampen the sentiments.
Source: Geofin Comtrade
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