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MARKET COMMENTARY
⊳Localnatural rubber markets stayed under pressure. On Wednesday, activities were sluggish in the physical market while on NMCE, in directionless moves were witnessed as markets await fresh triggers. According to trade sources, decline in daily reference price induced hopes that the tyre sector may show some buying interest. Still, higher imports and weakness in natural rubber prices in the overseas market weighed on. Also, traders are probably waiting for the Kerala State Budget for the FY 2015-16 to be tabled on 13th March.
⊳On Thursday, natural rubber is seen rising in the major international market. TOCOM rubber futures are seen inching up and so is SHFE rubber futures. Amidst lean production phase, gains in crude oil prices along with weak yen probably lend support.
MARKET NEWS
⊳Thailand and China are expected to sign a contract in May for China to purchase 2 million tonnes of Thai rice and 200,000 tonnes of rubber, following further discussions between the countries.
⊳A Division Bench of the Kerala High Court on Wednesday observed that the Union government was bound to take into account the plight of rubber farmers while formulating import policies.
⊳India’s natural rubber output fell 13.5% on year to 50,000 tn in February from 57,800 tn a year ago, according to data from the Rubber Board. Consumption in February was at 82,500 tn, up from 79,375 tn a year ago while imports in rose around 42% on-year to 28,806 tn.
⊳The Singapore Exchange (SGX) is in preliminary talks to be part of a Southeast Asian rubber exchange that would bring together the top three producing nations.
⊳Indian Rubber Dealers Federation not to buy RSS4 grade rubber from onwards as a protest against government’s failure to help crisis-ridden rubber sector and has announced indefinite closure of shops from 17th March onwards.
⊳The 2015 World Rubber Summit jointly organized by International Rubber Study Group and SingEx Exhibitions to be held in Singapore on March 24 and 25.
⊳Vietnam has been expanding its rubber export markets to India and Japan, reducing its reliance on China where demand for the commodity has fallen, the Vietnam Economic Times newspaper reported, citing industry sources.
⊳Rubber inventories in the warehouses monitored by SHFE declined 5.1 per cent to 156503 tonnes.
⊳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.
TECHNICAL COMMENTRY
RUBBER Apr NMCE
Indecisive moves are being witnessed last few days. Sustained trades below 12400 with volumes could intensify weakness. Alternatively, a break above 12650 could invite short covering and fresh buying.
Source: Geofin Comtrade
