MARKET COMMENTARY
⊳Natural rubber in the Indian markets rose towards the weekend after Kerala government announced certain sops announced in the FY2015-16 State Budget. In the physical market RSS4 grade jumped to Rs.129 a kg while in the futures segment tested its highest level since early-January. Commerce minister comments over raising the import duty on natural rubber too bolstered the sentiments. However, weakness in the major overseas natural rubber market turned out to be the party pooper. In the mean time, in the international market on Monday, natural rubber prices are on the negative turn trailing weakness in crude oil prices that slumped to its lowest level in more than six years. TOCOM as well as SHFE rubber futures slumped more than one per cent tracking weakness in oil prices.
MARKET NEWS
⊳Kerala Budget allocates Rs.300 crore Rubber Price Stabilisation Fund to purchase 20000 tonnes and fixes support price for rubber at Rs.150 a kg.
⊳Union government considering raising import duty on natural rubber to 25 per cent from the present 20 per cent according to the Commerce minister.
⊳Rubber inventories in the warehouses monitored by SHFE stayed unchanged at 156505 tonnes.
⊳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.
TECHNICAL COMMENTRY
RUBBER Mar NMCE
As long as the stiff resistance at 13000 caps upside corrective dips to 12650/12480 ranges cannot be ruled out. Slippage past 12480 with volumes may intensify weakness.
Source: Geofin Comtrade
