MARKET COMMENTARY
Undercurrents stayed weak in the Indian natural rubber market pressurized by steep declines in the overseas market and weak fundamentals. Quotes for RSS4 in the spot market hit the lowest in about two weeks on Thursday. On NMCE however, prices trimmed losses incurred during the early morning trades probably on bargain buying after prices dropped to a one and a half month low. Also abetting such buying were firm physical market prices and a bounce back in trend setting TOCOM, where prices retreated from a four month low on aggressive monetary easing moves by the Bank of Japan. The Japanese currency depreciated to its weakest level since August 2009 against the US dollar following the Bank of Japan action. However, the trend remains bearish in the overseas market weighed down by weak macro economic cues and swelling stockpiles in China and Japan.
MARKET NEWS
Rubber inventories in the warehouses monitored by SHFE declined, for the first time in nine weeks, by 1.1 percent to 117,504 tonnes last week.
According to Association of Natural Rubber Producing Countries, natural rubber output among the member countries increased 3.1 per cent to 10.6 million tonnes in 2012.
Crude rubber stockpiles held at Japanese warehouses rose 17.9 percent to 14,802 metric tons on March 20, according to data from the Rubber Trade Association of Japan.
Thailand’s Deputy Farm Minister says the govt. to decide upon extension of domestic rubber purchase program after monitoring the production rates when tapping resumes after the ‘wintering’ season.
Indonesia’s Trade Ministry to meet stakeholders and association on April 5 to discuss on fall in natural rubber prices and review exports.
Arunachal Pradesh govt allots Rs.10 crore to cultivate rubber in the state.
Thailand’s February rubber exports gain 0.2% on-year to 288,333 tons according to Ministry of Commerce.
TECHNICAL VIEW
RUBBER Apr NMCE
Broad Trend: Seen weak.
Near Term: The bounce back witnessed after taking support at 16000 in the previous session may extend towards 16400-16500 regions but requires clearing the same for further upsides. Weakness could prolong below 15900.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
16380/16550 |
16500-15900 |
16140/16000 |
|
16770/16860 |
|
15900/15750 |
|
16950/17050 |
|
15600-15500 |
Source: Geojit Comtrade
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