On Wednesday trade, September rubber rose to a high of 18,475 Rs/qtl as of 11.39 a.m Indian time and is expected to trade sideways to positive in near term. Support is now seen at 18100, 18020 levels and resistance at 18650 & 18800, analyst said.
MUMBAI (Commodity Online): Rubber prices at India’s National Multi Commodity Exchange (NMCE) witnessed a sideways phenomenon. Rubber for September delivery was trading around Rs 18,325-18,475 per quintal.
On Wednesday trade, September rubber rose to a high of 18,475 Rs/qtl as of 11.39 a.m Indian time and is expected to trade sideways to positive in near term. Support is now seen at 18100, 18020 levels and resistance at 18650 & 18800, analyst said.
Persisting rainfall activities at rubber growing areas coupled with strong spot markets amid fewer sellers’ impacted future prices. In Kottayam spot, RSS4 rubber prices were quoted at Rs 195.5 per kg and ungraded traded around Rs 181 per kg on Tuesday.
Indian Rupee is now trading with a loss of 1.03% at 61.41/61.42 on Wednesday. However, sharp downside in the currency was cushioned as appointment of Raghuram Rajan as the new governor of Reserve Bank of India (RBI) raising hopes of new approach towards currency management.
At Japan’s Tokyo Commodity Exchange (TOCOM), January rubber was trading up at 249.9 yen per kg or down by 3.4 yen as of 03.17 pm Japan time. Strength in yen coupled with gain in Nikkei and Asian stocks impacted TOCOM rubber prices.
Weak global cues on high production estimates from Thailand and Malaysia may put pressure on Indian rubber futures. We expect NMCE natural rubber to trade sideways to positive for the day.
Source: Commodity Online
