Support for Rubber around Rs 17380-17140: Geojit Comtrade

Geojit Comtrade has come out with its report on Rubber. According to the research firm, it has Support at around Rs 17380-17140 and Resistance at Rs 17530-17680.

Indonesia’s first-half rubber exports fell 8% from a year earlier to 1.2 million tons as the debt crisis in Europe cut demand, Asril Sutan Amir, chairman of the nation’s rubber association.

Crude rubber stockpiles held at Japanese warehouses fell 9.4% to 9,308 metric tons on July 31, according to data from the Rubber Trade Association of Japan.

Rubber inventories in the warehouses monitored by the Shanghai Futures Exchange declined 2.2% to 19140 tonnes last week.

Tyre grade rubber in Southeast Asia was trading at its lowest in at least four years and China is likely to step up purchases to exploit the low prices.

JK Tyre and Industries considering acquiring small rubber plantations probably in South-East Asia to securitize its natural rubber supplies.

India’s synthetic rubber production fell by 11% to 8,285 tonnes in April this year, while its consumption declined by 5% to 35,150 tonnes during the period, according to Rubber Board.

RUBBER Sep NMCE

In the previous session prices were held near 17400 after breaching its support at 17460. While the trend continued to be on the negative side, for the day, a pullback towards 17500-17600 regions may be seen before resuming its down trend.

However, it requires breaking 17680 for any further upsides. Alternatively, consistent trades below 17380 with considerable volumes could call for 17100-16900 in the near term.