On Tuesday trade, September rubber rose to a high of 18,681 Rs/qtl as of 11.16 a.m Indian time and is expected to trade sideways to negative in near term. Support is now seen at 18350, 18320 levels and resistance at 18750 & 18900, 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 18,601-18,681 per quintal.
On Tuesday trade, September rubber rose to a high of 18,681 Rs/qtl as of 11.16 a.m Indian time and is expected to trade sideways to negative in near term. Support is now seen at 18350, 18320 levels and resistance at 18750 & 18900, analyst said.
Rubber inventories in the warehouses monitored by SHFE rose 0.2 percent to 118188 tons last week. Crude rubber stockpiles held at Japanese warehouses fell to 8470 tons as of July 31 to its lowest in about seven months, according to data from the Rubber Trade Association of Japan.
Sharp fall in production in Kerala, which accounts for about 90 per cent of the total natural rubber output in the country, owing to unremitting monsoon rains has been holding up prices. In Kottayam spot, RSS4 rubber prices were quoted at Rs 196 per kg and ungraded traded around Rs 182 per kg on Monday.
At Japan’s Tokyo Commodity Exchange (TOCOM), January rubber was trading at 265.2 yen per kg or down by 1.2 yen as of 02.58 pm Japan time. Weakness in yen due to strength in dollar index impacted TOCOM futures.
Rise in demand and low production prospects may support NMCE rubber prices. We expect NMCE natural rubber to trade sideways.
Source: Commodity Online
