Rubber yesterday traded with the positive node and settled 1.29% up at 23460 on rising demand, led by China, boosted speculation that global consumption will outpace supplies that have been curbed by persistent rain in producing nations. Rubber may extend its rally as the rains reduce supply, compounding a seasonal drop in output, while car sales boost demand, Natural-rubber inventories in China declined 175 tons to 68,675 tons, based on a survey of 10 warehouses in Shanghai, Shandong, Yunnan, Hainan and Tianjin. Thai output during the leaf-shedding season, which runs from the end of February until May, drops as much as 60 percent from peak levels, the Association of Natural Rubber Producing Countries said in December. The low-production period also occurs at the same time in northern Indonesia and Malaysia. The high level of crude-oil prices also supported rubber, Ker said. Natural rubber typically gains in line with crude prices as oil is used to make synthetic rubber. In yesterday's trading session Rubber has touched the low of 23190 after opening at 22410, and finally settled at 23460. For today's session market is looking to take support at 23244, a break below could see a test of 23027 and where as resistance is now likely to be seen at 23623, a move above could see prices testing 23785.

Trading Ideas:

Rubber trading range is 23031-23789.

Rubber yesterday traded with the positive node and settled 1.29% up on rising demand

Rubber daily stocks at Shanghai exchange came down by 355 tonnes

Spread between Rubber FEB & MAR contracts yesterday ended at 600.00. Spread yesterday traded in the range of 550 to 990.

RUBBER OVERRANNED OVERALL STILL LOOKING TILL 23800 LEVEL. NMCE

NMCE accredited warehouses Rubber stock rosed by 128kgs to 10054kgs.