Despite the positive global markets, rubber futures in India slumped for the second day on weak Offtakes by the major buyers on the back of ample stocks. Key TOCOM rubber futures extended the gains, supported by encouragement over demand as Japan's stock market extended gains, while last week's announcement of export curbs by the world's top three rubber producers triggered buying on dips. The January contract is currently quoting at JPY 220.2, up 0.8 JPY per kg. The contract last week rose as high as 224.8 yen, the highest since Aug. 8.Thailand, Indonesia and Malaysia have agreed to cut down rubber trees and trim exports by 300,000 tonnes, or about 3 percent of global production this year, in their latest attempt to shore up slumping global prices. U.S. crude inched up further in early Asian trading extending Monday's gains, after the White House's plans to release emergency oil reserves to dampen rising gasoline prices in the country was opposed by its Asian allies as well as the head of the International Energy Agency. The NYMEX Crude Oil October futures quote at $96.42, up 0.16 cents per barrel. The NMCE Rubber September currently quotes at Rs 16753, down Rs 204 per quintal. Technically, the counter is likely to find next support at Rs 16625, Rs 16550 while next resistance is at Rs 16920, Rs 17070 per quintal.The expert committee to study rubber futures trading is yet to arrive at a consensus after many meetings during the past three months. The panel says that it will be difficult to restrict volatility to 1% or 2% from the current 4% and to ensure total transparency regarding buyers, which were the two key points raised by the critics of futures trade. However, the panel may suggest ways to increase the physical delivery.
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