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MARKET COMMENTARY
Natural rubber paused after the recent up run. On Wednesday, RSS4 in the spot market ruled rather flat after retreating from its strongest level in about ten months. On NMCE, the grade tested one week low before trimming initial losses and settling 0.22 per cent down from the previous closing. Major natural rubber consuming sector resorting to imports due to supply crunch and high prices circumscribed gains in the local market. Moreover, there has been a respite from the heavy monsoon rains for last few days.
In the international market, directionless moves are being witnessed following the recent rise. On TOCOM, the commodity is seen swinging between gains and losses on Thursday. Even as worries over demand from China and decline in crude oil prices weighed on, yen breaching 100 a dollar mark lend support. SHFE rubber futures are seen inching up while on AFET it opened flat.
MARKET NEWS
Malaysian Plantation Industries and Commodities Ministry targets to replant 37,282 hectares of rubber and open 13,000 hectares of new rubber plantations in the country this year.
The Automotive Tyre Manufacturers Association (ATMA) has informed Union commerce minister Anand Sharma that the industry is going for huge imports of natural rubber as the industry’s production schedules have been hit by the limited availability of natural rubber and its spiralling prices in the domestic market.
According to Vietnam’s General Department of Customs, the nation earned $971 million from export of 385,000 tons of rubber in the first half of this year and the figures represent year-on-year decrease of 4.4% in volume and 19.5% in value, the government agency reported.
According to Rubber Trade Association of Japan, crude rubber stockpiles held in Japanese warehouses fell 2.6 per cent to 11248 tonnes as of July 10 from 10 days before.
According to International Rubber Study Group, natural rubber surplus for 2013 is likely to be at 92000-284000 tonnes. World consumption of natural rubber is seen rising by 2.0-5.0 per cent compared to the previous estimate of 2.3-5.9 per cent rise.
TECHNICAL VIEW
RUBBER Aug NMCE
Pullbacks witnessed following a fall towards 18865 in the previous session may continue towards 19360 or more to 19500 but requires clearing the same for further upsides. Else, higher level selling may be seen.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
19360/19580 |
19800-19500-18750 |
19040/18865 |
|
19800/20000 |
|
18760/18500 |
|
20100/20400 |
|
18200/18000 |
Source: Geojit Comtrade
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