MARKET COMMENTARY
RSS4 continued its slide in the Indian markets, pressured by lack of buying interest from the major rubber consuming industries. In the spot market, the grade was quoted near its three week low of Rs.158 a kg. In the mean time, NMCE rubber futures shed over two per cent, slumping to its lowest since September 2010. Softening natural rubber prices in the global market weighed on the sentiments too. However, with local natural rubber prices slipping, it is now trading at a discount to that in the international market and the gap is widening especially with Bangkok RSS3.
A mixed trend is being witnesses in natural rubber prices in the international market as the week’s session concludes. While TOCOM rubber futures continued to decline, SHFE and AFET rubber futures steadied after the earlier declines. Yet, the overall market sentiments stayed weak on worries over stalled US budget talks. Uncertainty over the budget deal has reduced the risk appetite of the investors considerably.
MARKET NEWS
TOCOM December rubber futures expired with 288 lots (1440 tonnes) being delivered against 149 lots being delivered in November.
According to the International Rubber Study Group, the World Rubber Summit 2013 will be held at Raffles City Convention Center in Singapore on May 21-23, 2013.
The Kerala State Cooperative Rubber Marketing Federation (RubberMark) has called for steps to impose a total ban on import of rubber as well as encouraging exports by extending subsidy.
Ivory Coast expects to produce 300,000 metric tons of rubber in 2013 as it plans to raise funds for developing new production zones of the crop.
China will cut import taxes on two types on natural rubber for 2013. Import tariff for smoked rubber sheets will be set at 20 per cent with a cap at 1200 Yuan a tonne and for TSNR, it will be lowered to a maximum of 1200 Yuan a tonne.
TECHNICAL VIEW
RUBBER Jan NMCE
With prices breaching the strong support region of 15900 in the previous session, the trend stays considerably bearish. However, prices were held near 15700 levels and a brief bounce back was seen. For the day, even as the weak trend stays intact, a corrective pullback towards 16100-16200 regions may be seen before resuming its downtrend. Yet, direct fall below 15700 may see fall towards 15500 or more.
Source: Geojit Comtrade
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