Rubber rises on extended buying

NMCE rubber futures hit fresh contract high yesterday on strong buying interest supported by bullish fundamental factors.
A rally in TOCOM rubber futures on supply crunch from Thailand supported the Indian market. Domestic markets also witnessed supply crunch as farmers are holding back their produce anticipating further rise in the prices.
However, in later part of the day, prices shed morning gains on profit booking.
Outlook
The rubber futures are forecast to resume its uptrend based on bullish fundamental factors. TOCOM rubber futures are trading higher as supply has been disrupted in South East Asian countries due to active monsoon season.
Robust growth in world automobile sector is likely to give underlying support to the rubber market. Chinese auto sales in 2011 are expected to beat US, which may demand for more rubber.
Looking into rally in international price, Indian farmers are expecting rise in domestic price in line with international market. Spot price of RSS-4 rubber was `207.50 per kg on Tuesday.

(Source: http://www.commodityonline.com/futures-trading/technical/Rubber-rises-on-extended-buying-20727.html)