![[Geojit Comtrade] Daily report on Natural Rubber: November 9, 2012](https://img.globalrubbermarkets.com/2024/08/geojit-comtrade-daily-report-on-natural-rubber-november-9-2012.jpg?fit=336%2C252&ssl=1)
![[Geojit Comtrade] Daily report on Natural Rubber: November 9, 2012](https://img.globalrubbermarkets.com/2024/08/geojit-comtrade-daily-report-on-natural-rubber-november-9-2012.jpg?resize=336%2C252&ssl=1 "[Geojit Comtrade] Daily report on Natural Rubber: November 9, 2012")
MARKET COMMENTARY
- Natural rubber prices stayed weak in the Indian market on Thursday. Quotes for RSS4 made a fresh two-month low of Rs.173.50 a kg while, in the futures market the benchmark December rubber futures in NMCE slipped towards its weakest in eight weeks, dropping over one per cent. Subdued demand and surging imports by the tyre sector continue to weigh on prices in the middle of the peak production season.
- As the week culminates, natural rubber in the international market is seen bouncing back from the previous session fall backed by an upbeat inflation data from China. TOCOM rubber futures jumped nearly three per cent and so was SHFE rubber futures as lower than anticipated inflation figures reignited hopes of monetary loosening. However, further gains were capped as investors were awaiting other economic numbers from China and on the US fiscal woes.
TECHNICAL VIEW
- According to the Rubber Board, India’s natural rubber imports more than doubled in October on YoY basis to 18326 tonnes. Production dropped 3.35 per cent to 86300 tonnes while consumption rose 8.5 per cent to 83000 tonnes during the same period.
- Cambodia’s rubber exports rose 12 per cent on YoY basis during the first nine months of 2012 to 39360 tonnes.
- According to Malaysia’s Deputy Minister of Plantation Industries and Commodities, the government was unlikely to set minimum price of rubber to control prices though, the top three producers were to monitor closely to strengthen rubber prices.
- According to International Rubber Study Group, India’s demand for both synthetic and natural rubber is expected to rise to 2.7 million tonnes by 2021.
- Rubber inventories in the warehouses monitored by SHFE rose 5.3 per cent to 62965 tonnes in the previous week.
- According to Rubber Trade Association of Japan, crude rubber inventories at the Japanese ports increased to 6244 tonnes as of October 20 after falling to its two-year low early October.
TECHNICAL VIEW
RUBBER Dec NMCE
After having held support at 17400 in the previous session, brief pullback towards 17570-17650 or more to 17750 may be seen, followed by a turn lower. However, unanticipated rise above 17960 may lessen the prevailing weak bias.
A direct fall below 17400 with considerable volume will induce further weakness possibly towards 17240-17140 levels or more.
Source: Geojit Comtrade
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