Rubber Advances on Speculation China May Boost Purchases, Crude Oil Gains

• Rubber advanced, tracking gains in crude oil, on expectations that China, the world’s biggest buyer, will sustain purchases.
• January-delivery rubber in Tokyo added 1.2 percent to 283.30 yen a kilogram on the Tokyo Commodity Exchange at 11:46 a.m. local time. The contract lost 0.5 percent last week, the first decline in four weeks.
• Crude oil increased as much as 0.3 percent to $75.46 a barrel, improving the competitive position of natural rubber against rival synthetic material made from petroleum.
• Natural rubber inventories in China expanded for a third week by 1,667 tons to 21,875 tons, based on a survey of 10 warehouses in Shanghai, Shandong, Yunnan, Hainan and Tianjin, the Shanghai Futures Exchange said Aug. 13.

Rubber stockpiles in Japan grew to 3,275 tons as of July 31 from a record low of 2,628 tons on July 20, according to Rubber Trade Association of Japan data 

  Today’s Strategy*  

1) Go long above 17720 for a target of 17850 with a Stop Loss at 17610

2) Go short below 17590 for a target of 17490 with a Stop Loss at17675

3) Go short from 17900 for a target of 17790 with a Stop Loss at 17950

4) Go long from 17450 for a target of 17550 with stop loss at 17370.

Gold climbs to 1½ month high on global cues

• Gold prices regained to its one and half month high at the bullion market in Mumbai on Moday on persistent stockists and speculative buying, driven by surge in global markets.
• Standard gold (99.5 purity) shot up by Rs 120 per ten grams to close at Rs 18,665 from last Saturday’s closing level of Rs 18,545. It touched Rs 18,855 per ten grams on July 1, 2010.
• Pure gold (99.9 purity) also rose by a similar margin of Rs 120 per 10 grams to finish at Rs 18,755 as against Rs 18,635 last weekend.
• In Europe, gold rose to its seven week high on concerns over global economic recovery making it as a safe haven appeal.
• Spot gold hit an intra-day high of $1,224.25 an ounce in early trade.
• US gold futures for December delivery rose by $9.4 to $1,226 an ounce.

Pepper futures surge ahead on buying support

• Pepper futures, on Monday, shot up on good buying support and bullish reports from overseas.
• “Bullish reports from other producing countries that have taken a ‘U’ turn today, has influenced the market. As a result, bear operators covered back their sales. Besides, there was no availability of spot pepper. At the same time, there were enquiries from Europe where buyers have opened shop after the holidays.”
• There were just “buying and selling on paper to square up their positions,” market sources told Business Line.
• Spot prices, in tandem with the futures market trend and buying support, increased by Rs 200 to close at Rs 19,000 (ungarbled) and Rs 19,500 (MG 1) a quintal.
• Indian parity in the international market moved up to $4,375 a tonne (c&f).
• As the overseas markets opened after the holidays, the prices of pepper in other origins such as Vietnam shot up by about $300 a tonne, an overseas report said.

For more information contact – [email protected]