MARKET COMMENTARY
Natural rubber markets are under pressure on worries over demand. Despite it being the lean production phase, RSS4 in the spot as well as futures market continued to fall. On Tuesday, quotes in the physical market slipped to Rs.126 a kg while on NMCE, the commodity hit a three week low. Declines in the major overseas market and no major changes in the import tax on natural rubber against to the market expectations of a hike weighed heavily on the markets. In the mean time, natural rubber is seen stretching losses in the international market on Wednesday on lingering worries over economic growth in the top consumer China. SHFE lost more than 1.5 per cent while losses were meek on TOCOM.
MARKET NEWS
⊳The two-day India Rubber Meet 2015, organised jointly by the Rubber Board and other stakeholders in natural rubber, will get under way in Kochi today.
⊳India’s natural rubber production in 2015-16 (Apr-Mar) is likely to rise 12% on-year to 750,000 tn, said Rubber Board chairman (additional charge) A. Jayathilak. In the current FY, natural rubber output is estimated at 670,000 tn, down 13.4% from the 774,000 tn produced in 2013-14.
⊳In the Bandung meet of IRTC and IRCo, the members discussed the supply-demand scene, price stabilisation, ways to raise rubber consumption in each country, and ways to strengthen cooperation among other ASEAN rubber-producing countries such as Cambodia, Laos, Myanmar, and Vietnam but fell short of formulating specific and detailed efforts to support the price.
⊳Chief Minister OommenChandy 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, quoted him as saying that discussions would be held with the Rubber Board soon on the issue.
⊳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.
⊳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.
TECHNICAL COMMENTRY
RUBBER Mar NMCE
With prices slipping below 12450, there exists weakness. However, support at 12350 was held downside and a brief pullback was seen there-off. Now, it is necessary to break above 12600 to bring some short covering moves. A direct fall below 12350 will intensify weakness towards 12200 or more.
Source: Geofin Comtrade
