On Wednesday trade, September rubber rose to a high of 18,499 Rs/qtl as of 10.41 a.m Indian time and is expected to trade sideways in near term. Support is now seen at 18250, 18220 levels and resistance at 18590 & 18680, analyst said.
MUMBAI (Commodity Online): Rubber prices at India’s National Multi Commodity Exchange (NMCE) witnessed a sideways phenomenon. Rubber for immediate delivery was trading around Rs 18,385-18,499 per quintal.
On Wednesday trade, September rubber rose to a high of 18,499 Rs/qtl as of 10.41 a.m Indian time and is expected to trade sideways in near term. Support is now seen at 18250, 18220 levels and resistance at 18590 & 18680, analyst said.
Heavy rain during July at Kerala coast affected natural rubber production very badly as monthly output dropped to 32.4%. In July, production was 46,000 tones as against 68,000 tons in last July, according to Rubber Board data. This is the sharpest fall in monthly production during last four years.
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In Kottayam spot, RSS4 rubber prices were quoted at Rs 195.5 per kg and ungraded traded around Rs 181 per kg on Tuesday.
At Japan’s Tokyo Commodity Exchange (TOCOM), January rubber was trading at 265 yen per kg as of 02.31 pm Japan time. Weakness in dollar index and Nikkei trading down impacted TOCOM futures.
Lack of availability and global demand may support rubber prices in near term. We expect NMCE natural rubber to trade sideways to negative.
Source: Commodity Online
