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

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NEW DELHI: Home rubber costs moved in a good vary with a unfavorable bias amid skinny trade 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 Could 12. It’s up 11.95 per cent to this point this 12 months.

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

“Pure rubber trended regular to weak throughout the week passed by and is predicted to present comparable sentiment within the week forward as nicely. The RSS4 grade within the Indian market was held in a good vary within the futures market, whereas it inched decrease within the spot market in lacklustre trades,” mentioned Anu V Pai, Senior Commodity Analysis Analyst,

Monetary Companies. “It’s anticipated to range 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 earth.

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

Do you have to take positions now?
MCX near-month futures may 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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