NMCE Rubber tumbles on extended selling

NMCE rubber futures continued the down trend on active selling interest on Thursday. Futures started the day on negative note on extended selling pressure. However, positive trend in domestic spot and International market also supported the prices to recover.
But later on TOCOM futures also resumed the down trend of=n profit selling ended on negative note at ¥424.30 per Kg. Thus, on negative cues from international market futures at NMCE ended the day in red.
The rubbers futures are projected to continue the bearish trend on active selling pressure on Friday. However, TOCOM August futures are trading down at ¥428.0 per Kg. on active buying interest.
Domestic spot market has also reported a significant fall in prices which might further add to the down side. Thus on cues from overall international and domestic market might weigh on prices. However, short covering on lower levels can be seen during the day.
Factors to Watch For
As per deputy head of the China Rubber Industry Association, Natural-rubber demand in China, the biggest consumer, will rise 8% this year. Consumption will be 3.24 million metric tons, while tire output will climb 7.9 percent to an all-time high of 453 million units
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 Rubber Research Institute of Thailand, ribbed smoked sheet prices gained for a fourth day, up by 6.4% to 170 baht a kilogram on Tuesday
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 April contract, prices and volumes are falling while open interest rising. It is a good indication that a sharp rally against downtrend will develop creating a sell point for downtrend.
Japan Futures (TOCOM)
The TOCOM active August contract, prices are falling while volumes and open interest are rising. If prices are in a downtrend and open interest is on the rise, chartists know that new money is coming into the market, showing aggressive new short selling. This scenario will prove out a continuation of a downtrend and a bearish condition.
Shanghai Futures (SHFE)
The SHFE active July contract, prices, 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-tumbles-on-extended-selling-22800.html)