Rubber yesterday traded with the negative node and settled -0.89% down at 18450.00 and rubber market is likely to be quiet this week as sentiment is still weak following the current downtrend on regional markets. Rubber jumped last week as its slump to the lowest level in more than two years attracted buyers amid speculation that China, the biggest consumer, will take measures to boost its economy. China’s central bank may cut the reserve-requirement ratio for lenders “soon” and use reverse repurchase agreements to alleviate a possible capital shortage in July, China Securities Journal reported. 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. From international udpate Thai's Rubber Estate Organization will cut the price it buys ribbed-smoked sheets from farmers by 2.6 percent to 92.50 baht a kilogram on June 26. That’s higher than the average auctioned price in three southern markets of 90.59 baht, the organization said. In yesterday's trading session Rubber has touched the low of 18430 after opening at 18650, and finally settled at 18450. For today's session market is looking to take support at 18370, a break below could see a test of 18290 and where as resistance is now likely to be seen at 18590, a move above could see prices testing 18730.
Rubber trading range for the day is 18290-18730.
Rubber dropped marginally as sentiment is still weak following the current downtrend on regional markets.
Rubber jumped last week amid of speculation that China, will take measures to boost its economy.
Thai's Rubber Estate Organization will cut the price it buys ribbed-smoked sheets from farmers by 2.6%.
NMCE accredited warehouses Rubber stock dropped by -36kgs to 1097kgs.
SELL RUBBER JULY @ 18550 SL 18680 TGT 18420-18260.NMCE