NMCE Rubber regains on fresh buying

NMCE rubber futures continued the uptrend on fresh buying on previous losses on Wednesday. Domestic spot market also extended the recovery which supported the upside and prices again traded above 20,000 per quintal at spot.
Rubber futures at TOCOM also traded on positive side after a huge fall in prices. Thus on cues from above stated factors fresh buying pushed the prices at NMCE and futures ended in 4% upper circuit.
The rubbers futures are projected to continue the positive trend on extended fresh buying on Thursday. Recovery at domestic and international market rubber prices might support the prices.
Reports of government of Thailand has asked exporters to stop the shipments as Auto manufacturing companies in Japan have resumed their activity is likely to push the prices.
Factors to Watch For
Rubber spot market of Kochi again crossed the `20,000 per quintal yesterday taking cues from global rubber market sentiments
As per the Committee on rubber policy of Thailand Government, Thai government will negotiate with commercial banks to extend loans to exporters to buy rubber from farmers at a minimum price of 120 baht per Kg
According to rubber board of India, Indian February Natural Rubber Output is 54,500 Tons Vs 51,500 Tons, consumption is 79,000 Tons Vs 76,350 Tons and imports are 6,831 Tons Vs 12,278 Tons
As per data released by rubber board, the year end deficit in natural rubber in India is estimated around 1.2 lakh tons and it is expected to be increase to 2 lakh tons during 2011-12
According to the Rubber Research Institute of Thailand, physical price of Thai rubber was up by 1.5 percent to 137.25 baht ($4.51) a kilogram on Wednesday
According to the Association of Natural Rubber Producing Countries, Consumption in China, India and Malaysia, representing 48% of global usage, will increase this year
DERIVATIVE ANALYSIS
Indian Futures (NMCE)
The NMCE March contract, prices are rising while volumes and open interest are falling. Market is running out of traders willing to open or hold an open long/buy. Traders are liquidating both loosing short positions & closing winning long positions. A higher probability the market is set to retrace in price lower at some point.
Japan Futures (TOCOM)
The TOCOM active August contract, prices are rising while volumes and open interest are falling. Market is running out of traders willing to open or hold an open long/buy. Traders are liquidating both loosing short positions & closing winning long positions. A higher probability the market is set to retrace in price lower at some point.
Shanghai Futures (SHFE)
The SHFE active July contract, prices are rising while volumes and open interest are falling. Market is running out of traders willing to open or hold an open long/buy. Traders are liquidating both loosing short positions & closing winning long positions. A higher probability the market is set to retrace in price lower at some point.