Monday, September 10, 2012

Good day for NR expected


Thailand Government turned down the plan to devote extra funds for rubber intervention. However, it will review the situation to ascertain whether further buying is necessary to support prices.

Natural rubber futures in India are likely to trade steady during the week as thin arrivals offset poor demand from tyre makers due to a slowdown in auto sector. Natural rubber prices will be active as supply is tight due to continuous rains in Kerala. There will be some consolidation in rubber, but the trend is weak as imports have gone up. Natural rubber imports during April-July period jumped nearly 27% to 76,666 tonnes.

Today RSS3 grade closed at `.157.53 a kg at Bangkok and most probably RSS4 grade rubber in India will also close with a positive note around `.176 a kg. On the National Multi Commodity Exchange, the September series may close around `.182 a kg. and on TOCOM rubber futures, September series may close around ¥227 a kg. and can expect further upward trend in tomorrow’s trade.

Rubber prices have firmed up in Indian markets possibly on rains in Kerala impacting production of rubber and likely revival of automobile sales in the festive season as manufacturers offer more discounts and gifts to lure customers.

Read lot more in Rubber4U – 15th September 2012 issue

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