MARKET COMMENTARY
Natural rubber prices in the Indian market continue to move in tight ranges. In listless trades, RSS4 ruled flat near Rs.186 a kg on Tuesday while on NMCE, the grade ended the session in green amidst low volumes. Market remained in a holiday mood and was yet to resume active trading after Onam.
In the overseas market, natural rubber prices are seen trading mixed on Wednesday. TOCOM and SHFE rubber futures moved rather steady with a mild positive bias while AFET rubber futures dropped. Reports that China is discussing with suppliers buy 200000 tonnes of rubber for government stockpiles lend firm support to the prices. However, caution prevailed in the market ahead of the US FOMC policy announcement later tonight that may hint towards rollback of the central bank’s massive bond buying program.
MARKET NEWS
Bloomberg reports, China held discussions with suppliers about buying 200,000 metric tons of rubber for government stockpiles.
According to the Qingdao International Rubber Exchange, rubber inventories in Qingdao, China’s main hub for the commodity, fell to 283,100 metric tons today, from 295,000 tons on Aug. 30.
Thai rubber farmers resume protests demanding higher price for their produce despite the government offer of 21.2 billion baht subsidy.
According to the Rubber Board, natural rubber imports in Au natural rubber imports in August more than doubled from a year ago to 40,809 tonnes. The country’s production during the month fell 5.5 percent on year to 69,000 tonnes, while consumption eased by 4 percent to 80,000 tonnes.
Thai govt set up three sub-committees to solve the low rubber prices after the network of rubber farmers from 18 southern provinces accepted the government’s subsidy offer. Also, the Bank for Agriculture and Agricultural Cooperatives (BAAC) expects the subsidy money for rubber farmers to be ready for distribution in one month.
TECHNICAL VIEW
RUBBER Oct NMCE
Prices are held inside 18500-18100 ranges and require a breakout from either the sides with considerable volume for further directional moves.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
18500/18700 |
18500-18100 |
18250/18100 |
|
18860-18970 |
|
17950/17750 |
|
19060/19250 |
|
17600-17500 |
Source: Geojit Comtrade
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