MARKET COMMENTARY
⊳Natural rubber steadied in the local market after the recent declines though the sentiments stayed feeble. On NMCE, the commodity was seen varying in narrow ranges on Wednesday and managed to end the session mostly in green while in the physical market it hovered near Rs.126 a kg. Subdued demand coupled with declines in the international market continued to hamper the overall market sentiments even as the market is in the middle of lean production season. In the overseas market on Thursday, natural rubber was under pressure after China government lowered it growth target for 2016 to 7.0 per cent, below 2014 growth rate of 7.4 per cent. TOCOM as well as SHFE rubber futures lost more than two percent as demand woes gripped the market.
MARKET NEWS
⊳According to ANRPC, gobal natural rubber output could jump over five per cent this year after posting its first drop in nearly half-decade 2014 as a price rebound prompts more tapping in key producers Thailand, Indonesia, Vietnam and India.
⊳The two-day India Rubber Meet 2015, organised jointly by the Rubber Board and other stakeholders in natural rubber, will conclude today in Kochi.
⊳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.
⊳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
While there exist weakness, as long as support at 12400 holds downside, pullback may be anticipated to 12650 or even more to 12800. However, a direct fall below 12400 with sturdy volume could call for 12250/12150 or more
Source: Geofin Comtrade
