MARKET COMMENTARY
Activities in the local natural rubber market were muted on Wednesday. While NMCE remained closed on the account of ‘Holi’, RSS4 in the spot market remained in the vicinity of the three month high. Looking ahead, the trades are likely to remain subdued with holidays looming. However, decline in natural rubber in the international market may weigh on the sentiments restricting gains. On Thursday, reversing the previous session advances, natural rubber prices moved to a negative territory. TOCOM and SHFE rubber futures dropped over two per cent as worries over Cyprus and weak economic indicator from the US hurt sentiments. Absence of Chinese buying added further pressure on prices. Natural rubber inventories in China are at its highest in three years.
MARKET NEWS ⊳The Thai cabinet on Tuesday approved an injection of US$3.3 million (Bt109.89 million) into the tripartite rubber consortium for rubber price stability in the global market.
Tyre manufacturing major Michelin expects to commence production at its new facility near Chennai by mid-2013.
TOCOM March rubber futures expired with 406 lots being delivered against 511 lots in the previous month.
China’s Rubber Industry Association sees synthetic and natural rubber consumption rising 7.79 per cent and 7.25 per cent respectively in 2013
According to Vietnam’s Ministry of Agriculture and Rural Development, the nation’s rubber exports for first three months of 2013 seen at 200,000 tons, down 37% vs same period last year.
The Malaysian Rubber Board is planning to launch a second edition of strategies for the local rubber industry within the next few months in view of the new challenges and prolonged issues in the thriving industry, according to director-general Datuk Dr Salmiah Ahmad.
National Multi Commodity Exchange registered a 405 per cent rise in rubber delivery at 3,087 tonnes this month against 763 tonnes in March 2012.
TECHNICAL VIEW
RUBBER Apr NMCE
Broad Trend: Seen weak, yet successful attempts to clear 17050 could lessen the weakness.
Near Term: Break below the neckline support has overshadowed the prospects for upsides. Inability to hold 16400 could call for further selloff towards 16200 or more. Else, choppy trades in 16400-16800 ranges may be seen.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
16770/16860 |
17050-16400-16200 |
16500-16400 |
|
16950/17050 |
|
16250/16140 |
|
17200/17400 |
|
16050/15900 |
Source: Geojit Comtrade
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