Rubber yesterday traded with the positive node and settled 1.54% up at 20115 on good demand amid thin supply, but a surge in tapping and weak demand at home may limit the upside. Indian farmers expect prices in the domestic market to follow the rally overseas. They may hold stocks hoping prices to move higher. In Thailand, the world's biggest producer, the prices are nearly 8 rupees per kg higher than that in India. Tapping has improved in Kerala in the past few days due to dry weather, but demand is weak. In yesterday's trading session Rubber has touched the low of 19940 after opening at 19975, and finally settled at 20115. For today's session market is looking to take support at 19970, a break below could see a test of 19825 and where as resistance is now likely to be seen at 20230, a move above could see prices testing 20345.

Trading Ideas:

Rubber trading range is 19825-20345.

Rubber ended higher on good demand amid thin supply

Rubber daily stocks at Shanghai exchange came up by 100 tonnes.

Spread between Rubber DEC & JAN contracts yesterday ended at 413.00. Spread yesterday traded in the range of 300 to 413.

NMCE accredited warehouses Rubber stock rosed by 159kgs to 3564kgs.