Rubber yesterday traded with the negative node and settled -0.01% down at 18497 are likely to nudge lower this week on weak demand and rising supplies, but the Thailand government's plan to intervene in the market is seen limiting the downside. India's natural rubber imports in May rose to 18,419 tonnes from 16,293 tonnes a year ago, state-run Rubber Board said. India imports natural rubber from Thailand, Indonesia, Malaysia and Vietnam. Rubber market may get a shot in the arm if Thailand government starts buying rubber aggressively from farmers. Thailand has bought only a fraction of the 200K tns of rubber sheet it planned to purchase under a govt intervention scheme and is now looking for sales to China to help prop up prices, the deputy agriculture minister said. Market expects rubber consumption from tyre makers to drop in the coming months on lower demand from auto makers, who posted lackluster sales in May. Rubber jumped last week as its slump to the lowest level in more than two years attracted buyers amid speculation that China, the biggest consumer, will take measures to boost its economy. China’s central bank may cut the reserve-requirement ratio for lenders “soon” and use reverse repurchase agreements to alleviate a possible capital shortage in July. In addition, the recent rain in the major growing areas in Kerala is expected to improve the production of natural rubber in the country. In yesterday's trading session Rubber has touched the low of 18370 after opening at 18450, and finally settled at 18497. For today's session market is looking to take support at 18411, a break below could see a test of 18325 and whereas resistance is now likely to be seen at 18541, a move above could see prices testing 18585.

RUBBER

Rubber trading range for the day is 18326-18586.

Rubber likely to nudge lower this week on weak demand and rising supplies.

Rubber traded in the range as lackluster demand from the tyre manufacturers amidst gloomy economic outlook.

Worries over worsening Euro Zone debt crisis and flagging economic growth in US and China weighed on the sentiments.

NMCE accredited warehouses Rubber stock remain unchange at 0kgs to 1097kgs.

SELL RUBBER JULY @ 18500 SL 18650 TGT 18380-18260.NMCE