Rubber declined sharply over the past two weeks, losing almost 13% from its highs. The recent recovery in prices from support at Rs.14400/quintal is expected to face resistance at Rs.15400/quintal. Prices are expected to resume the downtrend going ahead, we expect Rs.13800/quintal as the next key level in Rubber.
The recent decline in prices were triggered by reports that Thailand is selling rubber stocks which were previously held in storage, the quick influx of stocks has been negative for prices over the past few weeks. With the resumption of tapping in major producing regions, prices are expected to weaken further next week.
(Sam Nair is Head of Commodities Research, Celebrus Commodities Limited)