Market and product

• Weighed down by steep decline in the international market,natural rubber in the Indian markets was seen edging lower onMonday. Intensifying concerns over Euro Zone debt crisis and weakUS employment data had triggered strong liquidation in the globalmarket which affected the rubber markets too. However, NMCErubber futures were seen trimming the initial losses after a gapdown opening.
• Natural rubber in the international market was seen recovering onTuesday. Tocom rubber futures trimmed initial losses after falling toits lowest level in three months while in Shanghai, prices bouncedback. Limited supply from Thailand, largest producer of naturalrubber, provided firm support to prices though uncertain economicoutlook and fall in crude oil prices may cap gains.

MARKET NEWS

• Rubber Board sees natural rubber production in India rising to942000 tonnes in the FY 2012-13 and consumption crossing onemillion tonnes creating a deficit of 64000 tonnes.
• Tyre giant, Bridgestone, was in the market for Indonesian tyregrade in the international market while China was almost silentkeeping gains limited in the physical market the previous week.
• Rubber inventories in the warehouses monitored by SHFEdeclined 2.9 per cent to 16542 tonnes during last week.
• Japan’s natural rubber imports are up two per cent to 69406mt onmonth on month basis according to Rubber Trade Association ofJapan. Also, crude rubber stockpiles in Japan rose 3.7 per cent to14766tonnes on Apr20 from 10 days before.
• Vietnam cut its 2012 rubber export forecast by 0.6 per cent to930,593 metric tonnes.
• China was seen chasing tyre grades from Southeast Asia in theprevious week, to replenish its dwindling domestic inventories.However, abundant supply in Indonesia kept SIR20 prices at itslowest in three month.

TECHNICAL VIEW

RUBBER nmce June

Attempts to move higher after taking support at 19550 wererestricted near 19800 in the previous session. While the biascontinues to be visibly on the negative side, for the day, successfulattempts to break above 19800 may see a rise towards 19900initially followed by 20060. However, strong positive moves areexpected only above 20060. As long as 19800 caps upside, movestowards 19400 can be anticipated and slippage past the same willstrengthen weakness.