NMCE Rubber recovers on fresh buying

NMCE rubber futures traded higher on extending fresh buying after witnessing huge losses last week. Futures started the day on positive note on active buying spot market activity also supported the upside.
TOCOM futures also traded higher and made a new high of ¥ 520 per Kg. and settled at ¥ 518.60 per Kg on bullish sentiments. Good recovery in spot prices also supported the prices at lower levels and futures traded on positive note.
The rubber futures are projected to trade positive on extending fresh buying on Tuesday. TOCOM rubber July futures are also trading up at ¥ 520.90 per Kg. after making a new high of ¥ 522.50 per Kg. on active buying interest. Emerging demand from tyre industry is also supporting the prices at domestic spot market. Thus on cues from above stated factors NMCE rubber futures are projected to trade higher today.
Factors to Watch For
Natural-rubber inventories monitored by the Shanghai Futures Exchange is reported around at 58,058 tons, which is down by 62 % from last year’s highest inventory levels of 151,832 tons
According to Rubber Research Institute of Thailand, The physical price of natural rubber in Thailand, the world’s largest exporter, extended gains to an all-time high of 193.30 baht ($6.28) per kilogram on Feb. 11
According to the Association of Natural Rubber Producing Countries, Natural-rubber consumption in China and India may rise 9 percent to 3.6 million tons this year and 5.2 percent to 991,000 tons respectively
Chinese rubber imports have come down by 14% to 150,000 tons due to prevailing higher prices in international market
According to China Association of Automobile Manufacturers, Car-sales growth in China will be around 10 to 15 percent this year Total auto sales, which include cars, trucks and buses, jumped 32 percent last year to 18.06 million
DERIVATIVE ANALYSIS
Indian Futures (NMCE)
The NMCE February contract, prices, volumes and open interest all are rising. Market is attracting larger numbers of traders willing to open positions from the long side and hold them. Traders are more confident that prices will continue to climb in favor of a working long. This scenario is good clues that uptrend are secure & that the trend may continue further for a period of time.
Japan Futures (TOCOM)
The TOCOM active June contract, prices, open interest are rising while volumes are falling. Market is attracting late buyers & early shorts; market is vulnerable to a sharp correction but likely that that correction will be bought creating a buy point for uptrend.
Shanghai Futures (SHFE)
The SHFE active June contract, prices and volumes are falling while open interest is rising. It is a good indication that a sharp rally against downtrend will develop creating a sell point for downtrend.

(Source: http://www.commodityonline.com/futures-trading/technical/NMCE-Rubber-recovers-on-fresh-buying-21928.html)