Rubber futures test Rs 17,000 mark. Time to take positions?


NEW DELHI: Domestic rubber costs moved in a good vary with a destructive bias amid skinny commerce on Monday.

On

, rubber futures for June 30 supply quoted at Rs 17,200 per 100 kg, down by Rs 7 or 0.04 per cent, having fluctuated across the flatline between Rs 16,960 and Rs 17,325 earlier within the day.

At this stage, the contract is 3.31 per cent away from its 52-week peak of Rs 17,789 per quintal registered on May 12. It is up 11.95 per cent to this point this 12 months.

The coronavirus pandemic continues to sway the general market sentiment within the natural rubber market, say analysts. Going ahead, the lockdown in Kerala together with developments on the monsoon entrance are possible to affect rubber costs, they mentioned.

“Natural rubber trended steady to weak during the week gone by and is expected to show similar sentiment in the week ahead as well. The RSS4 grade in the Indian market was held in a tight range in the futures market, while it inched lower in the spot market in lacklustre trades,” mentioned Anu V Pai, Senior Commodity Research Analyst,

Financial Services. “It is expected to vary inside Rs 17,400-16,800 per 100 kg initially,” Pai mentioned.

Earlier this month, the Kerala authorities prolonged the lockdown until June 16 due to the excessive Covid test positivity price prevailing within the state.

Kerala is the highest rubber-producing state within the nation, which is the world’s second largest shopper of pure rubber behind China. India is the sixth largest producer of the commodity on the planet.

Rubber is extensively used throughout industries with heavy demand from cars, aeronautics, electronics, healthcare and energy transmission companies.

Should you take positions now?
MCX near-month futures might be bought round Rs 17,100 for a goal of Rs 17,500 for one week with a cease loss at Rs 16,850 per quintal, mentioned Ajay Kedia, founder and director, Kedia Advisory.



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