MARKET COMMENTARY
Natural rubber remained under selling pressure in the Indian market. Overall sentiments stayed feeble and activities remained sluggish in the physical as well as in the futures segment weighed down by falling natural rubber prices in the overseas market and on lacklustre demand from the tyre sector. On Tuesday, RSS grade rubber in the physical market declined to Rs162.50 a kg, its weakest level in about a month while on NMCE the grade traded in thin ranges and ended mostly flat. Latex (drc60%) prices dipped as well. Steep plunges in natural rubber prices in the overseas market have significantly widened the price differential, increasing prospects of higher imports. Indian benchmark grade stays on a premium and the gap between Malaysian SMR 20 has broadened to its highest since October 2012. In the mean time, Thai market reopened today after the two days Songkran festival holiday and AFET rubber futures tumbled more than five per cent. TOCOM and SHFE rubber futures erased initial gains and resumed its downtrend on demand woes.
MARKET NEWS
Immature rubber plants of two-four years are drying up in India’s north-eastern region owing to prolonged dry weather.
Rubber stockpiles at Qingdao, China’s largest hub for the tropical commodity, rose to a record 366,900 tons by April 15 according to the Qingdao International Rubber Exchange Market.
Thailand, Indonesia and Malaysia, the top rubber suppliers, cut exports by 300,000 metric tons as targeted and will discuss replanting as a complementary measure, according to the International Tripartite Rubber Council.
Thailand and Malaysia will collaborate in setting up rubber industry zones on both sides of the common border in order to create jobs and income for citizens of both nations.
Thailand targets to lower shipments of rubber by 10% through end of May to help support prices, says Thai deputy farm minister Yuttapong Charasathien.
Crude rubber stockpiles held at Japanese warehouses rose 6.7 percent to 15,799 metric tons on March 31, according to data from the Rubber Trade Association of Japan.
Natural rubber imports by India surged to a record high to hit 216642 tonnes in FY’13. Consumption and production showed only a marginal rise during the same period, at 971980 and 912200 tonnes respectively.
TECHNICAL VIEW
RUBBER May NMCE
Broad Trend: Seen weak.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
16100/16250 |
16250-15900-15480 |
15800/15650 |
|
16400/16550 |
|
15480/15260 |
|
16700/16860 |
|
15100-14900 |
Source: Geojit Comtrade
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