At the Threshold of Closing Season

Updated Price Trend & Analysis as of February 29, 2008

Direction :  Adjusted in up trend to Y 306 then down pressure at Y300.

Technical Graph :  Price risen to Y306 before going down to Y301 in the morning.  In the end price rebounded to Y303 again.  The rebound could signify the mere opening force to close sell.  This force should come along the day and drive the price to touch Y306 again before going down to Y300.

Tips :  Wait to sell at Y306.

 

Fundamental Rubber Price Trend & Analysis

Supply :  The seldom raining in the South of Thailand would further bring difficulty to the rubber stock collection.  It is the close of rubber season and supply is kept in the supplier hand for high-price speculation.

Demand :  Rubber Stock in usage of the user is reducing while the demand of big user like China is increasing due to the high usage in Olympics Game usage and constantly high demand of rubber consumption.

Factors :  High price of oil keeps rocketing that drive and support strongly the price of synthetic rubber as a perfect substitute of natural rubber.  The expected prolonged duration of rubber wintering season due to swirvering seasonal change may affect the feeling to keep long stock for the good price.  Seasonal index does not work correctly since last year.  This should bring alert caution to both the buyers and sellers owing to the hands of speculators in the futures market.