- NMCE rubber futures resumed to rise on Wednesday after inching down the previous day. The most active December rubber futures hit its highest in about a week, gaining nearly one per cent. Lessening gap between local and international rubber prices and restricted arrivals to the market may have lifted prices. Also, firm natural rubber prices in the international market supported the sentiments. In the mean time, activities in the spot market remained muted though positive moves in futures market buoyed prices.
- A positive trend continued in the natural rubber in major international markets. TOCOM rubber futures, rising for the fourth consecutive session, touched a three week high. Expectation of higher demand from China after data showing expansion in manufacturing activity during November propped up prices. Weaker yen too supported the sentiments.
- Thailand, the world’s biggest rubber producer, will expand a statebuying program by more than doubling purchases from farmers to support higher prices, according to Deputy Farm Minister Yuttapong Charasathien.
- Shanghai Securities News citing the country’s rubber industry group says large Chinese tire companies plan to establish a fund to strengthen pricing on natural rubber.
- Rubber inventories in the warehouses monitored by the SHFE rose 3.5 per cent to 66675 tonnes last week.
- As a part of efforts to support prices and farmers, China has started stockpiling natural rubber and will buy between 150000- 200000 tonnes from the domestic market for the state reserves.
- Thailand, Indonesia and Malaysia will be meeting on 11th and 12th December in Phuket to seek ways to stabilise rubber prices.
- Malaysia’s natural rubber exports fell 3.4 per cent to 60337 tonnes in September on MoM basis.
- Vietnam is likely to be among the top three natural rubber exporters in 2012, surpassing Malaysia, according to ANRPC.
RUBBER Dec NMCE
Likely to continue the upside momentum witnessed during the previous session if prices breach and sustain 17650 convincingly, possibly towards 17800-17960 region or more. Inability to sustain 17650 may call for a lower correction initially to 17400, followed by 17240. However, slippage past 17100 may see weakness creeping in.
Source: Geojit Comtrade
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