MARKET COMMENTARY
The week’s session commences on a positive note. On Monday, natural rubber prices in the Indian market inched up. In the physical market, RSS4 strengthened to Rs.196 a kg while on NMCE, the most active September rubber futures gained over one per cent. Vigorous monsoon rains over the major rubber growing areas in Kerala is affecting production as well as disrupting supplies. According to Indian Meteorological Department, the average rainfall in the State has been 42 per cent in excess of the normal range.
Natural rubber traded mixed in the overseas market on Tuesday. The commodity used in making tyres is seen swinging between positive and negative turfs on TOCOM as well as in SHFE. The benchmark January rubber futures on TOCOM was seen reversing its earlier losses in lacklustre trades. However, strengthening yen capped gains.
MARKET NEWS
ANRPC sees natural rubber imports by China rising 6.6 per cent in 2013 to 3.59 million tonnes.
Indonesian Agricultural Ministry expects 2013 natural rubber output to be at 3.18 million tonnes against the previous estimate of 2.77 million tonnes.
Rubber inventories in warehouses monitored by SHFE declined by 20 tonnes to 117913 tonnes last week. Crude rubber stockpiles held at Japanese warehouses fell 9.7 percent to 10,192 metric tons on July 20, according to data from the Rubber Trade Association of Japan.
Rubber Board revise down June 2013 production to 38000 tonnes from the earlier estimate of 54000 tonnes.
According to Thai Agricultural Minister, the Government has no plans to sell the rubber stocks, which stands at 210000 tonnes that it brought through market intervention scheme for now.
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.
TECHNICAL VIEW
RUBBER Sep NMCE
While some more upsides are in store, requires breaking and sustaining above 18800 ranges to strengthen the positive sentiments. Else, lower corrective moves may be witnessed 18300/18100 ranges.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
18500/18600 |
18800-17950 |
18250/18100 |
|
18800/19000 |
|
17950/17850 |
|
19280/19400 |
|
17700/17600 |
Source: Geojit Comtrade
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