NMCE rubber futures showed a smart recovery on fresh buying on previous day’s losses. Futures started the day on lower note on extended selling pressure. However, overall buying interest pushed the prices on higher side.
TOCOM futures also closed higher on Friday at ¥501.60 per Kg. Indian spot market have also resumed its bullish trend. Sellers are not ready to sell at current level because of prevailing difference in domestic and international prices. Thus, on cues from above stated factors rubber futures traded higher and ended on positive note.
The rubber futures are projected to trade lower on active selling on Monday. Spot rubber also witnessed a down trend on Saturday which may further pressurize the prices at futures also.
TOCOM rubber July futures are trading lower at ¥496.20 per Kg. Crude oil prices are also expected to trade lower on cues from data releases from Euro zone. Thus, on cues from international and domestic market futures are likely to trade down today.
Factors to Watch For
Shanghai market will be closed From February 6th to February 8th due to Lunar New Year
According to Malaysian Meteorological Department, The La Nina weather event is having a major impact on palm oil and rubber production in Malaysia as heavier rainfall may hamper harvesting and tapping
According to the Rubber Research Institute of Thailand, The physical price of natural rubber in Thailand advanced to 180.55 baht ($5.84) a kilogram yesterday from 178.55
According to the Association of Natural Rubber Producing Countries, Natural-rubber consumption in China may rise 9% to 3.6 million tons this year and India’s consumption may gain 5.2% to 991,000 tons
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 and open interest are rising while volumes are falling. It indicates 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.
Japan Futures (TOCOM)
The TOCOM active June contract, prices and open interest are rising while volumes are falling. It indicates 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.
Courtesy: Karvy Commtrade Ltd.
Monday, February 7, 2011
NMCE Rubber settles higher on fresh buying
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