Commodity Trading Tips for Rubber by KediaCommodity
Rubber yesterday traded with the negative node and settled -1.74% down at 23505 on profit booking overall market seems to keep it pace in coming time as heavy rains threaten Thai’s output. Rubber futures in Tokyo andShanghai climbed to a record amid concern that heavy rain will reduce output in top producer Thailand, worsening a supply shortage as China may step up purchases before the Lunar New Year holiday. Indian rubber prices continue to be on a discount compared to the international market the rise in prices have not only put tyre manufactures into fix but also the other industries like glove, footwear etc. This spiraling up of prices might prompt the industries using natural rubber to shift to other cheaper substitutes like synthetic rubber. In order to solve the problem of inadequatestorage facility being faced by rubber industry NMCE and Central Warehousing Corporation (CWC) announced two additional delivery centers in Kerala. These warehouses located near Ernakulam and Kozhikode will add storage capacity of 12, 250 tonnes and 1, 890 tonnes respectively. For today’s session market is looking to take support at 23301, a break below could see a test of 23097 and where as resistance is now likely to be seen at 23909, a move above could see prices testing 24313.
Trading Ideas:
Rubber trading range is 23097-24313.
Rubber yesterday traded with the negative node and settled -1.74% down on profit booking
Rubber daily stocks at Shanghai exchange came down by 2585 tonnes
Spread between Rubber FEB & MAR contracts yesterday ended at 616.00. Spread yesterday traded in the range of 560 to 616.
NMCE accredited warehouses Rubber stock rosed by 116kgs to 10534kgs.
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