NMCE Rubber surges on global cues

NMCE rubber futures traded highly volatile on Saturday on mixed sentiments prevailing in market. Futures started the day on lower note on extended selling pressure. TOCOM market was also closed at positive note on Thursday. 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 Monday. TOCOM rubber July futures are also trading up at ¥ 518.50 per Kg. on active buying interest. Recovery in spot market might also add to the upside.
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 the Rubber Research Institute of Thailand, Farmers reduce tapping during the wintering period from February to May, when rubber trees shed leaves and latex production declines. Some plantation areas in northeast Thailand have already entered the low-output season
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 are rising while open interest and volume 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.
Japan Futures (TOCOM)
The TOCOM active June contract, prices, open interest and volume 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 a good clue that UPTREND is secure & that the trend may continue further for a period of time.
Shanghai Futures (SHFE)
The SHFE active June contract, prices, open interest and volumes all are falling. If the total open interest is falling off and prices are declining, the price decline is being caused by disgruntled long position holders being forced to liquidate their positions. Often a signal of a market turns near-term or continued volatility.

(Source: http://www.commodityonline.com/futures-trading/technical/NMCE-Rubber-surges-on-global-cues-21901.html)