MARKET COMMENTARY
⊳ Natural rubber prices continued to slide down in the Indian market last week. In the physical market, RSS4 made a fresh five year low. Weakness in the overseas market coupled with poor demand and burgeoning imports weighed on overall market sentiments. However, limited supplies to the market restricted sharp declines. Despite it being the peak production phase growers are yet to start tapping actively.
⊳ On Monday, a mixed trend is being witnessed in the overseas natural rubber market. TOCOM rubber futures inched up while SHFE and AFET rubber futures declined tracking weak oil and lacklusture economic indicator from China. Overall sentiments stayed weak though weak yen lend support.
MARKET NEWS ⊳ Rubber inventories in the warehouses monitored by SHFE rose 2.4 per cent 139810 tonnes last week.
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⊳ Kerala CM urges the Center to raise the import duty on rubber. Also to demand a special rubber re-plantation package from the Center
⊳Crude rubber inventories at Japanese ports stood at 9,791 tonnes as of Nov. 20, down 5.8 pct from 10 days earlier, according to a data from the Rubber Trade Association of Japan.
⊳ China’s Hainan Rubber Industry Group said it had signed an agreement to buy 208,000 tonnes of rubber from Thailand.
⊳ Thailand’s natural rubber exports declined 11 per cent to 291641 tonnes in October according to the nation’s Ministry of Commerce.
⊳ Vietnam’s Ministry of Agriculture and Rural Development expects rubber exports in November to be at 113000 tonnes. In October, the nation shipped 147000 tonnes compared to 119000 tonnes exported during the same period last year.
⊳ Thai Farm Ministry will form a joint committee with rubber farmers to discuss the industry’s short and long- term problems according to Amnuay Patise, deputy minister.
⊳ China tire companies urges the government to take measures against anti-dumping and countervailing duties imposed on tire imported from China by the US.
TECHNICAL COMMENTRY
RUBBER Jan NMCE
With support at 11450 being breached there exists considerable weakness which is likely to stretch. However, mild pullbacks to 11500-11650 cannot be ruled out before resuming its downtrend.
Source: Geofin Comtrade
