Rubber prices may test Rs 16250: Geojit Comtrade

Geojit Comtrade has come out with its report on Nartural Rubber. According to the research firm, successful attempts to sustain above Rs 16050 could provide a lift to Rubber prices towards Rs 16250 but requires clearing the same for further upsides. Else, it may succumb to higher level selling.

Thailand has spent 22 billion baht buying 198,000 tons from farmers above market rates to boost local prices, according to Yuttapong Charasathien, deputy farm minister. According to the Society of Indian Automobile Manufacturers India’s car sales and commercial vehicles sales dropped by 12.44 and 9.51 percent respectively in January.  According to Rubber Board, India’s natural rubber production declined by 5 percent to 97,000 tonnes in January, while consumption fell by 9 per cent to 75,000 tonnes. 

Rubber inventories in the warehouses monitored by SHFE rose 1.2percent to 100015 tonnes.  Natural rubber imports by China rose 19 percent in January to 250000 tonnes on MoM basis.  According to Rubber Board, India’s synthetic rubber consumption rose by 17 per cent to 36,710 tonnes in October last year while the production rose by 5 per cent to 9,006 tonnes during the period. According to Association of Natural Rubber Producing Countries, rubber imports by the top consumer China surged 18 per cent during 2013 to 3.37 million tonnes.

Technical View:

Near Term: Successful attempts to sustain above Rs 16050 could provide a lift to prices towards Rs 16250 but requires clearing the same for further upsides. Else, it may succumb to higher level selling.

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