Rubber yesterday traded with the positive node and settled 1.66% up at 22971 as lower prices lured buyers amid concern that a seasonal drop in shipments from top exporter Thailand is set to worsen a supply shortage. Buyers in China, the largest user, may step up purchases to replenish stockpiles before the nation marks the Lunar New Year break next month. Rubber production in Thailand during leaf-shedding season, which runs from the end of February until May, shrinks 45 to 60 percent from peak production, the Association of Natural Rubber Producing Countries said in December. Natural-rubber inventories declined 175 tons to 68,675 tons, based on a survey of warehouses in Shanghai. In yesterday's trading session Rubber has touched the low of 22748 after opening at 22410, and finally settled at 22971. For today's session market is looking to take support at 22783, a break below could see a test of 22594 and where as resistance is now likely to be seen at 23125, a move above could see prices testing 23278.

Trading Ideas:

Rubber trading range is 22594-23278.

Rubber ended higher as lower prices lured buyers amid concern of supply shortage

Rubber weekly stocks at Shanghai exchange came down by 175 tonnes

Spread between Rubber FEB & MAR contracts yesterday ended at 603.00. Spread yesterday traded in the range of 551 to 915.

NMCE accredited warehouses Rubber stock rosed by 371kgs to 9243kgs.