Rubber likely to trade in Rs 16700-17200 range: Geojit
Geojit Comtrade has come out with its report on rubber. According to the research firm, rubber range bound movement being witnessed for the past few sessions in Rs 16700-17200 ranges is likely to continue and requires a break out from either the sides for further directional moves.
September 07, 2012 / 13:40 IST
Geojit Comtrade has come out with its report on rubber. According to the research firm, rubber range bound movement being witnessed for the past few sessions in Rs 16700-17200 ranges is likely to continue and requires a break out from either the sides for further directional moves.
According to the Indonesian Rubber Association, the nation will start cutting exports in the fourth quarter of this year. Of the 300000 tonnes cut in exports as planned by the top three natural rubber producing countries, Indonesia’s share account for 100000 tonnes. Area under rubber cultivation in Indian rises 3.6 per cent in 2011-12 over previous year.
Thailand’s Farm Minister says, the top three natural rubber producing countries to hold talks with Vietnam with an aim to work jointly to stabilise natural rubber prices. He also added that export cuts may be expanded if existing measures fail to impact prices. According to the Association of Natural Rubber Producing Countries, natural rubber production from key growers may expand 4.7 percent in 2012 from last year to 10.83 million metric tons.According to data from the Rubber Trade Association of Japan, crude rubber stockpiles held at Japanese warehouses fell 7.6 percent to 7,387 metric tons on Aug. 20. Production in the Apollo Tyres unit in Kalamessery that was suspended following a fire break out is likely to be resumed in next few days. The range bound movement being witnessed for the past few sessions in Rs 16700-17200 ranges is likely to continue and requires a break out from either the sides for further directional moves. Even as the broad trend stays weak, successful attempts to breach the resistance at Rs 17240 will have the potential to lift prices towards 17400 initially or more. On the other hand, slippage past Rs16700 may pull prices further down to Rs 16580-16450 levels. Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.To read the full report click on the attachment 
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