MARKET COMMENTARY
Natural rubber traded mostly flat in the Indian market on Monday probably buoyed by steep advances in the global markets. In the physical market, quotes for RSS4 improved marginally to Rs.157.50 a kg. However, the underlying sentiments stayed on the weaker side. NMCE rubber futures pared initial gains and culminated the session lower 0.3 percent. Even as the losses were limited owing to sharp gains in the international market and restricted supplies, higher production and rising stockpiles delimited gains. Anticipation of a rise in prices during ‘wintering’, when tapping activity slows, prompted growers to hold back their produce.
A mixed trend in being witnessed in the overseas market on Tuesday. TOCOM and AFET rubber futures are seen retreating after rallying up the previous day while SHFE rubber futures resumed rising following an initial dip. TOCOM rubber futures retreated from a 10- month high, dropping over one per cent, on renewed concerns over the European debt crisis.
MARKET NEWS
According to Association of Natural Rubber Producing Countries, rubber imports by the top consumer China surged 18 per cent during 2013 to 3.37 million tonnes.
Rubber inventories in the warehouse monitored by SHFE rose 0.8 per cent to 98814 tonnes.
According to Malaysian Rubber Board, natural rubber output may expand 6.5 per cent in 2013 on improving yield and higher prices.
According to Rubber Trade Association of Japan, crude rubber inventories in the Japanese ports fell by 202 tonnes to 6934 tonnes in the 10 days to January 10 from a four month peak marked at the end of 2012
According to Vietnam’s General Statistics Office, the nation shipped 117,000 tons of rubber in Dec., up 11% from previous assessment of 105,000 tons.
TOCOM January rubber futures expired with 124 lots being delivered compared to 288 lots being delivered in December.
According to IRSG, NR production is set to outpace consumption by 179,000 metric tons this year and 153,000 tons in 2014.
TECHNICAL VIEW
RUBBER Feb NMCE Broad Trend: Weak
Near Term: Higher level selling likely as long as 16250 caps upside.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
16050-16100 |
16250-15500 |
15700/15500 |
|
16240/16400 |
|
15380/15260 |
|
16540/16700 |
|
15100/14900 |
Source: Geojit Comtrade
Download this report (full content – PDF file) bellow:
