- A mixed trend was witnessed in the local natural rubber market on Monday after showcasing a strong bull run in the previous week. While quotes for RSS4 grade rubber jumped to Rs.196 a kg, stretching the last week’s gains, NMCE rubber futures took a breather from its run up and culminated the session slightly lower. Yet, prices remained in the vicinity of four and a half month high. Overall sentiments stayed on the positive side buoyed by surge in natural rubber prices in global market. Attempts by major producers to shore up prices and rising domestic consumption aided the sentiments.
- Natural rubber continued to rally in the international market. TOCOM reopened today after holiday and rubber futures broadened gains after an initial dip. Moves by Thailand, Indonesia and Malaysia to prop up natural rubber prices supported the sentiments.
- Natural rubber production in India edged higher by 2.5 per cent to 73000 tonnes in August on a year on year basis while consumption rose nine per cent to 83000 tonnes during the same period.
- Rubber inventories in the warehouses monitored by the SHFE rose 10.6 per cent to 42296 tonnes the previous week.
- According to Thailand’s Deputy Farm Minister, national rubber policy committee approved a budget of 30 billion baht to purchase rubber sheets from the farmers at above market rates. Meanwhile, the inventories held by the Thai Govt rose to 100000 tonnes from around 80000 tonnes on August 21.
- India’s natural rubber consumption rose five per cent to 4.20 lakh tonnes in April-August 2012 on YoY basis while production showed only a marginal rise of 0.8 per cent to 331700 tonnes during the same period. Imports dropped 17 per cent on a year to 14870 tonnes in August on reduced imports by the tyre manufacturing industry.
- According to Indonesian Rubber Association, natural rubber output in the country is likely to decline 10 per cent to 2.8 million tonnes on YoY basis in 2012.
- TECHNICAL VIEW
RUBBER Oct NMCE
Attempts to breach the considerably strong resistance of 19650 during the previous session were unsuccessful. However, the trend stays on the positive side and 19650, if cleared convincingly may lift prices higher to 19900-20000 region initially and could even target 20200-20500 in the near term. However, a fall below 19140 may see liquidation to 18900 levels beyond which mild weakness may creep in.
Source: Geojit Comtrade
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