Rubber yesterday traded with the negative node and settled -0.46% down at 20900 as investors sold to lock-in gains amid concerns over tightening global supply. The Thai cash price gained to an all-time high. Output from Thailand, the world's biggest exporter, has been hurt by heavy rains and may shrink further as the low- production season starts around February. Rubber production in Thailand will fall by about 30,000 tonnes a year for the next six years because of damage from floods. Thailand's annual production is about 3 million tonnes. In yesterday's trading session Rubber has touched the low of 20741 after opening at 21100, and finally settled at 20900. For today's session market is looking to take support at 20694, a break below could see a test of 20488 and where as resistance is now likely to be seen at 21153, a move above could see prices testing 21406.

Trading Ideas:

Rubber trading range is 20488-21406.

Rubber ended weak as investors sold to lock-in gains

Rubber production in Thailand will fall by about 30,000 tonnes a year for the next six years

Spread between Rubber JAN & FEB contracts yesterday ended at 450.00. Spread yesterday traded in the range of 414 to 525.

SELL RUBBER JAN BELOW 20800 SL 21000 TGT 20680-20500.NMCE

NMCE accredited warehouses Rubber stock rosed by 200kgs to 4892kgs.