Rubber yesterday traded with the positive node and settled 0.66% up at 18640 on short covering at the weekend but the sluggish demand from domestic tyres makers due to ample supply from Malaysia is likely to put pressure over the prices. With natural rubber production expected to fall short of the domestic consumption for the second year consecutively, the rubber industry wants the Centre to permit duty-free imports, at least to the extent of the deficit. In addition, the recent rains in the major growing areas in Kerala is expected to improve the production of natural rubber in the country. India's natural rubber imports in May rose to 18,419 tonnes from 16,293 tonnes a year ago, state-run Rubber Board said earlier this month. Supplies in India were rising and are expected to improve further after top rubber producing Kerala state received rains in the past three weeks. Natural rubber prices will remain under pressure globally due to falling crude oil prices, which makes synthetic rubber cheaper than natural rubber. In addition, the recent rains in the major growing areas in Kerala is expected to improve the production of natural rubber in the country. In yesterday's trading session Rubber has touched the low of 18525 after opening at 18550, and finally settled at 18640. For today's session market is looking to take support at 18560, a break below could see a test of 18480 and where as resistance is now likely to be seen at 18685, a move above could see prices testing 18730. RUBBER
Rubber trading range for the day is 18480-18730.
Rubber prices ended with gains on short covering but the sluggish demand due to ample supply from Malaysia weighed on prices
The recent rains in Kerala is expected to improve the production of natural rubber in the country.
Rubber weekly stocks at Shanghai exchange came up by 846 tonnes
NMCE accredited warehouses Rubber stock dropped by -121kgs to 1203kgs.
SELL RUBBER JULY @ 18750 SL 18880 TGT 18550-18350.NMCE
- Oil firms falls as government considers export parity pricing model
- Essar Oil to sign $1 billion financing co-operation deal with CDB
- ONGC may sell stakes in deep-water blocks to Shell
- Huge scope for improving Indian shale gas estimates: ONGC
- HPCL Visakha refinery suffers major fire due to short circuit