Monday, September 3, 2012

Short term upward trend


Tocom rubber futures surged ahead on hopes of further stimulus from US Fed Reserve and price support initiatives recently announced by major rubber producing countries. Tocom rubber futures settled higher tracking strong gains on Shanghai and one can see the resistance at ¥235 a kg. On TOCOM rubber futures, as of 4th September at 14:20 JST, September series were trading at ¥220.0 a kg, October at ¥222, December at ¥227.5 and February 2013 at ¥229.9 a kg. Physical prices of Thai USS3 rubber also climbed to THB77.29-THB77.77/kg. The commodity arrivals are low due to rain in south Thailand recently, which limits tapping.

China’s economy grew just 7.6% in the three months to June, the worst performance in three years and the sixth straight slowdown, while figures for trade, industrial output and retail sales in July were also weak. China will release its July trade data on Friday, with commodity imports expected to decline for the second consecutive month.

Automobile sales giving no hope for further uptrend, spot rubber prices in India have fallen to Rs 169 and on Monday, it closed at 172 per kg and RSS3 grade closed at `.152.94 a kg at Bangkok with a positive note. India’s GDP growth have fallen to 5.5% from 8% a year ago, the outlook remains bleak for automotive sector, although demand is expected to pick up during the festival season.

Read lot more in Rubber4U – 15th September 2012 issue

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