- In the previous week, RSS4 in the Indian market was on aconsolidation mode and in the spot market, the grade traded firm inthin ranges of Rs.188-186.50 per kg. NMCE rubber futures too weretrapped in narrow ranges and traded with slight negative bias. Weakmacro economic cues, sluggish demand and prospects of higherimports kept the market under pressure. However, according tosources, supply of sheet rubber was limited, which might haveprobably limited losses. Meanwhile, tapping continued mostlyunhindered.
- On Monday, in the international market, natural rubber threwmixed signals. While Shanghai rubber futures fell sharply afterresumption of trading following a three day holiday, Tocom andAFET rubber futures rose. During the previous session, Tocomrubber futures rebound from a two and a half year low it hit,tracking gains in other commodities.
- With sharp drop in natural rubber prices, tyre major Bridgestonewas seen chasing Indonesian tyre grades for nearby shipments whileChina showed renewed interest.
- Tripura, the second largest natural rubber producer in India, isplanning to expand its area under rubber cultivation to nearly onelakh hectare. Meanwhile, AIRIA has sought Center’s assistance toallocate land in North-eastern region for rubber cultivation.
- According to the Rubber Trade Association of Japan, crude rubberstockpiles in the Japanese warehouses remained unchanged at14800 tonnes from 21 May to 31 May.
- Car manufacturers in India are planning to shut down their plantstemporarily to reduce inventories as vehicle sales dwindle owing tohigh interest rates and increasing fuel prices.
- Thailand Govt. bought 5000 tonnes of rubber sheet, just 2.5 percent of the volume it planned to purchase through the marketintervention scheme.
- According to Thai News Agency, around 200 farmers in Thailandprotested over low natural rubber prices and urged the governmentto solve the problem.
RUBBER nmce Jul
While the broad trend remains on the negative side, the pullbackseen in the previous session after taking support near 18500 regionmay extend towards 18800-18900 levels followed by a turn lower.However, successful attempts to break and sustain above 19050 willward off the weakness and stretch the gains to 19200 or more.On the other, a hand direct fall below 18500 with considerablevolume will add to the weakness towards 18360 initially followed by18200 or more.
Source: Geojit Comtrade
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