MARKET COMMENTARY
Natural rubber traded in tight range is local market on Wednesday as investors await cues from the upcoming key events for further directional moves. On NMCE, RSS4 ended almost flat while in the physical market, the commodity slightly tick up in lacklusture trades. Market attention is on today’s International Rubber Consortium (IRCo) meeting in Indonesia and the Union Budget for FY 2015-16. In the mean time, positive moves are being witnessed in the major overseas natural rubber market tracking overnight gains in crude oil prices while eying top natural rubber producers’ meeting. TOCOM, SHFE as well as AFET rubber futures are trading up by about two per cent on Thursday.
MARKET NEWS
⊳ Chief Minister Oommen Chandy has said that the government would soon take steps to check the slide in rubber price. A press note issued by the Chief Minister’s Office, after discussions between Mr. Chandy and rubber dealers here on Wednesday evening, quoted him as saying that discussions would be held with the Rubber Board soon on the issue.
Related Post
⊳ 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.
⊳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
Range bound moves are being witnessed inside 12450-12900 levels and requires a break out from either the sides for further directional move.
Source: Geofin Comtrade
