Chinese purchasing managers index monitored by HSBC Holdings Plc and Markit Economics climbed from 47.7 in June to 50.1 in July. A reading above 50 indicates expansion.
TOKYO (Commodity Online): With the Chinese manufacturing data coming in on an expansionary note and the European economy signalling positive cues to investors, the futures of natural rubber on Tokyo Commodity Exchange zoomed.
Futures for delivery on Januray 2014 was seen trading at 269.4 Yen a kilogram, a gain of 7.9 Yen against the previous close.
“Rubber resumed a rally as optimism grew that Europe’s economy may solidify its recovery and the Chinese growth may be accelerating, leading to an expansion in demand,” said Kazuhiko Saito, chief analyst at broker Fujitomi Co. in Tokyo to Bloomberg.
As per technical analysis, the commodity is expected to enter bull territory if the futures settle above 272.6 yen.
Chinese purchasing managers index monitored by HSBC Holdings Plc and Markit Economics climbed from 47.7 in June to 50.1 in July. A reading above 50 indicates expansion.
Meanwhile, Thailand one of the biggest producers of natural rubber, would find respite if the bull run in the futures continue.
The country currently sits on 200,000 tons of idle natural rubber inventories.
The government had decided to chip in with $1 billion in aid for farmers, after cartelisation efforts in concert with Indonesia and Malaysia failed to arrest price drop in natural rubber aggravating farmers’ poor plight.
Source: Commodity Online
