While RSS4 in the spot market remained firm near 214 a kg, prices in the futures market resumed its uptrend, with the most active November contract gaining around 1.5 per cent on Wednesday. According to media sources despite improvement in weather and resumption of tapping in the major rubber growing areas, arrivals to the market have been limited as growers held the produce probably expectation of better prices. Gains in other commodities and equities, plunging imports and rising domestic exports kept afloat positive sentiments in the market. The recently released monthly natural rubber statistics by the Rubber Board showed that rubber exports have rose360 per cent to 16503 tonnes during the first half of FY 2011-12 compared to 4558 tonnes exported during the same period last year. Meanwhile, the provisional data also showed that stocks are on an all time high of 279477 tonnes in September which will have a dampening effect on natural rubber prices. However, the methodologies of calculating stocks by the Rubber Board have been under question from various quarters.

In the international market, natural rubber prices were seen steadying near the recent highs. Preliminary trade data released by China for the month of September showed that China’s imports of natural rubber rose 20 per cent to 240000 on MoM basis. Dry wintering season in Indonesia and unfavorable weather in Thailand may keep prices firm in the international market.

Source: http://www.moneycontrol.com/news/brokerage-recos-commodities/geojit-comtrade%60s-viewrubber_598831.html