Last Updated : 10 October 2012 at 09:10 IST
KOTTAYAM (Commodity Online): India natural rubber witnessed mixed trend in spot markets and bullish trend in futures on Tuesday.
KOTTAYAM (Commodity Online): India natural rubber witnessed mixed trend in spot markets and bullish trend in futures on Tuesday.
RSS 4 variety of natural rubber was traded at the rate of Rs.191/Kg even as RSS 5 was seen trading at Rs.187/Kg. Ungraded rubber was traded for Rs.180/Kg.
There have been no rains and tyre companies are not participating in trade, sources said.
“Still information suggests that they purchase natural rubber in anonymity. They don't give much of publicity in this regard. Given that prices are ruling low in natural rubber in the international markets, there have been no exports happening.” a trader informed.
Meanwhile, in the spot markets on Monday, RSS 4 variety was traded at the rate of Rs.192-193/Kg and RSS 5 variety at Rs.187/Kg. Spot close price-- the price according to close of trade that is carried out at the fag end of the day; at 6.00 pm or after-- ruled at Rs.190/Kg and Rs.186/Kg on Monday. The overall trend had been bearish in spot for that day.
Tuesday Futures
Rubber futures on the NMCE opened at Rs.18140, touched a high of Rs.18796, a low of Rs.18410 and closed at Rs.18249. Meanwhile, NMCE natural rubber ware house stocks as on Monday is estimated at 7 tons.
“Some buying in natural rubber futures may occur in coming sessions. From current levels, Rs.18150 looks good support for the week while Rs.19200 is the resistance for the same. Trend appears to be bullish in futures.” our in-house analysts said.
Global trends
Natural rubber prices witnessed mixed trends in global market as weak crude oil prices dampened market sentiments while supply curbs by leading producers, Thailand, Indonesia and Malaysia continues to provide positive support to prices.
At Tokyo Commodity Exchange, benchmark March contractrose 3.7 Yen in day session to 273.8 Yen per kg but fell back to 271.6 Yen per kg as International Monetary Fund (IMF) lowered forecast for economic growth.
US WTI crude oil futures remained weak at $89 levels which is not supportive of natural rubber.
In India rains have weakened in the key growing region of Kerala state in south India and production has intensified while tyre sector is not an active buyer in the market due to prevailing Rs 15-20 per kg price differential between Indian and global prices.
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