Rubber Updates

Advisory Data :-

Indian rubber futures are likely to show marginal drop from the high on weak global cues. However, futures are likely to stay firm on strong demand against the tight supply. The NMCE Rubber most active October contract ended the last day at Rs19283, up Rs358 or 1.89% over last close. Technically, the counter is likely to find resistance at Rs19350-19450 and support at Rs19155-18960 per quintal.

The spot rubber quotes steady tone at Rs19150 per quintal in the Kochi and Kottayam market on Saturday. TOCOM Rubber futures most active February 2012 contract is quoting at JPY 253.9, down JPY 3.1, after moving in the range of JPY 258.5-250.2 per tonne in the early Asian trading session on Monday.

Rubber fundamentals are strong on supply demand gap. Global opportunities for the production of natural rubber and the demand growth are encouraging in view of the improvement in the economic indicators of the US, China, Japan and Europe, said Kamarul Baharain Basir, secretary general, Association of Natural Rubber Producing Countries (ANRPC). He was inaugurating the India Rubber Summit and Dinner 2012 (IRSD 2012), held in Kochi on Saturday (September 15). Basir predicted that there would be a 4.7% rise in natural rubber supply to 10.83 million tonnes in 2012 while the consumption would rise by 4.8% to 11.59 million tonnes. “Of this, China would consume 3.67 million tonnes and India one million tonnes,” he noted. To bridge the demand-supply gap, the governments should extend incentives to the farmers to step up production and the industry needs to be encouraged to set up captive natural rubber plantations, he said. He called upon natural rubber producers to strengthen their scientific and technological efforts towards developing alternative sources of natural rubber such as Russian dandelion, guayule, sugar and glycol.

The NMCE Rubber October contract found strong support at Rs18700-18800 level and tested the high Rs19310 per quintal. The open interest dipped 14% to 1,751 tonnes, indicating short covering.