Rubber futures rise on firm Tokyo market
The rubber futures rose on Tuesday on a sharp rise in the Tokyo market and expectations of a likely fall in stocks, analysts said.
By PTI |
MUMBAI: The rubber futures rose on Tuesday on a sharp rise in the Tokyo market and expectations of a likely fall in stocks, analysts said.
"The Tokyo market jumped on Tuesday and it helped the domestic prices to move higher," said Vibhu Ratandhara, an analyst with Bonanza Commodity Brokers Pvt Ltd. Tokyo rubber futures jumped more than 2 per cent to their highest in 20 months on Tuesday as gains in other commodities and concerns about tight supply spurred fund buying.
A rise in oil prices and expectations of a fall in stocks also pushed up prices, said an analyst with a Delhi-based commodity brokerage. Oil rose above $96 a barrel on Tuesday, but the rally lacked conviction as traders predicted a quarrel between OPEC member Venezuela and US energy major Exxon Mobilwould have limited impact.
Natural rubber prices often benefit from high crude oil prices because investors believe expensive oil will encourage a shift to natural rubber from synthetic rubber, a petroleum product. India's natural rubber stocks are likely to drop 20 percent to 180,000 tonnes by the end of March from end-January as lower domestic prices push up export demand, a senior Rubber Board official said on Monday.
The April contract would face resistance at Rs 10,580 and get support at Rs 10,360, Ratandhara said.
"The Tokyo market jumped on Tuesday and it helped the domestic prices to move higher," said Vibhu Ratandhara, an analyst with Bonanza Commodity Brokers Pvt Ltd. Tokyo rubber futures jumped more than 2 per cent to their highest in 20 months on Tuesday as gains in other commodities and concerns about tight supply spurred fund buying.
A rise in oil prices and expectations of a fall in stocks also pushed up prices, said an analyst with a Delhi-based commodity brokerage. Oil rose above $96 a barrel on Tuesday, but the rally lacked conviction as traders predicted a quarrel between OPEC member Venezuela and US energy major Exxon Mobilwould have limited impact.
Natural rubber prices often benefit from high crude oil prices because investors believe expensive oil will encourage a shift to natural rubber from synthetic rubber, a petroleum product. India's natural rubber stocks are likely to drop 20 percent to 180,000 tonnes by the end of March from end-January as lower domestic prices push up export demand, a senior Rubber Board official said on Monday.
The April contract would face resistance at Rs 10,580 and get support at Rs 10,360, Ratandhara said.
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