MARKET COMMENTARY
- Natural rubber in the local market was seen rising towards the close of last week bolstered by supply disruptions. Heavy and incessant rains in the major natural rubber growing areas in Kerala last week affected production activity and hindered arrivals to the market. In the physical market, RSS4 grade rubber rose to Rs.139 a kg. However, the rebound being witnessed currently is likely to a temporary one as lower prices in the overseas market and higher stocks is likely to ponder upon.
- On Monday, natural rubber was trading in red in the major overseas market. TOCOM rubber futures are seen stretching previous week’s losses tracking decline in crude oil prices amidst increased worries over global economic growth. SHFE and AFET rubber futures fell as well.
MARKET NEWS
- Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose by 196 tonnes to 15570 tonnes last week.
- NR inventories in Qingdao, China’s main rubber trading hub, drop to 214,300 mt from 239,000 mt as of July 31, according to Qingdao International Rubber Exchange Market.
- Rubber exports from Thailand rose 9.8 per cent to 1.7 million tonnes during January-June 2014.
- Crude rubber inventories at Japanese ports stood at 19,188 tonnes as of July 20, down 2.1 percent from 10 days earlier, according to Rubber Trade Association of Japan.
- Indonesia’s natural rubber production is seen at 3.2 million tonnes in 2014 compared to 3.1 million tonnes produced last year according to the country’s Agricultural Ministry.
- Natural rubber imports during the first six months of 2014 rose 58 per cent to 1.61 lakh tonnes.
- Kerala State Finance Minister says Rs.10 crore have been enmarked to procure natural rubber and likely to pay Rs.5 per kg more than the daily domestic market price of rubber.
- The Association of Natural Rubber Producing Countries’ 7th Annual Rubber Conference to be held in Kuala Lumpur, Malaysia on 13th October 2014.
TECHNICAL VIEW
RUBBER Sep NMCE
The rebound being witnessed for the past few sessions is likely to face stiff resistance at 14100 ranges, which if cleared with considerable volume, could call for 14280 or more. However, a direct fall below 13700 may induce weakness.
TURNAROUND
| Resistances | LEVELS | Supports |
| 14050-14100 | 14200-13950-13700 | 13870/13740 |
| 14280-14350 | 13600/13500 | |
| 14430/14520 | 13460/13370 |
Source: Geojit Comtrade
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