MARKET COMMENTARY
RSS4 in the Indian markets continued to edge higher bolstered by the proposed market intervention by the Kerala State government to arrest steep declines in prices. On Monday, the commodity extended the previous week’s gains in both physical as well as futures market. In the spot market, the grade was quoted at its strongest level since early January this year as sellers chose to stay on the sidelines in anticipation of further advance in prices owing to the government measure. On NMCE, the grade culminated the session nearly 2.5 per cent higher. According to media reports, the State Cabinet is to meet on Wednesday to decide upon the implementation of the rubber procurement scheme. Sharp gains in the overseas market as well as boost given to the auto sector in the latest Union Budget may have influenced the sentiments too.
MARKET NEWS
Production as well as consumption of natural rubber in India declined 9.4 and 0.9 per cent respectively during the period from April 2013 to January 2014 as compared to the same period in the last fiscal according to the Rubber Board.
The Cabinet Committee on Economic Affairs has approved a 9.6- bln-rupee outlay for the continuation of the “Sustainable and Inclusive Development of Natural Rubber Sector” scheme under the 12th Plan (2012-2017).
The Rubber Board in partnership with stakeholder associations in rubber and related sectors is organising India Rubber Meet 2014 (IRM 2014) at Le Meridien Convention Centre, Kochi on 20 and 21 February 2014.
Rubber inventories in the warehouses monitored by SHFE fell 0.1 per cent last week to 207452 tonnes. ⊳Crude rubber inventories at Japanese ports rose 4.1 percent from 10 days earlier to a near seven-year high of 18094 tonnes as of Feb 10, data from the Rubber Trade Association of Japan showed.
The closely watched rubber inventory in China’s bonded warehouses in Qingdao jumped more than 11 percent in the past month to around 340,000 tonnes, three industry sources said.
TECHNICAL VIEW
RUBBER Mar NMCE
While the positive momentum stays intact, corrective dips to 15500- 15400 ranges cannot be ruled out before resuming its uptrend. However, a direct rise above 16060 with considerable volumes could intensify the buying momentum.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
15900/16060 |
16060-15400-15100 |
15700/15500 |
|
16180-16250 |
|
15350/15200 |
|
16360/16500 |
|
15100-15000 |
Source: Geojit Comtrade
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