Support for Rubber around Rs 17850-17750: Geojit Comtrade

Indonesian tyre grade rubber traded below $3.0 a kg for nearby shipments; China’s presence almost nil.

Rubber stocks in the warehouses monitored by Shanghai Futures Exchange declined 2.2 per cent to 18955 tonnes the previous week.

Maruti Suzuki’s car manufacturing facility in Manesar, Haryana closed owing to labour unrest.

Cambodia’s rubber latex exports rose five per cent to 22615 tonnes in the first six month of 2012 on a year on year basis.

Indonesia is planning to set aside about $530 million to revitalise the state-owned rubber plantations.

Thailand plans to double the budget for rubber purchases to 30 billion baht ($951 million) according to its Deputy Farm Minister.

China’s GDP for the second quarter of 2012 recorded a growth of 7.6 per cent; it’s slowest in three years. Industrial production in June falls to 9.5 per cent from 9.6 per cent the previous month.

According to International Rubber Study Group, global natural rubber consumption is likely to expand less than previously forecast this year owing to economic slowdown in China and Euro Zone debt crisis.

RUBBER Aug NMCE
The bearish sentiments currently being witnessed is likely to continue in near term. 17850 pose to be the immediate support which once breached with considerable volume may see prices testing 17600-17500 region or even more in the near term. Now a break above 18250-18400 regions is required to bring mild positive bias.

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