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Oct 31, 2008

Natural rubber investing time for the arrival of quietly

Last week, international and domestic Jiaojia overall rise in the first offer gum on the shoulders reversal patterns at the end of a very uncertain, the domestic market, Hu Jiao in January has broken the 20,000 mark, market or into the city. We had pre-stressed rubber in the city of 10, 11 months in theory there is a reduction in supply, prices are likely to rise, at present, technical and fundamental shape of a good situation exactly, is quietly close to the time of investment.

Last week, markets, the international spot Jiaojia full strength, Thailand experienced floods, have a tapping on the more serious negative impact. By the end of November at the end of the rainy season is expected to yield the normal time of 1 / 3, in November as a whole, the world's rubber supply spot will be a relatively low, at the same time, in mid-September the international organizations also expressed rubber prices further down pectin , The three major rubber producing countries will be likely to gradually reduce exports in order to control the size of the market, which currently constitute Jiaojia support.

In the past two days alone on the domestic market since the market's sharp rise, we believe that speculative bullish momentum is still stronger than their own rose Hujiao demand. First of all, the domestic market supply to Yunnan and Hainan provinces are still at a high yield, early in the domestic market of a large number of Jinkou Jiao source for some time been in a stage of digestion, the good news is a good premium sales areas in recent days, the supply-side constraints brought about by the pressure drop. At the same time, in December and January for the month in part reflected the impact of rising prices, is expected late on the market after breaking up plastic will be significantly faster than the speed of the domestic market.

We believe that the technical level, the glue on the market at the end of the current head-and-shoulders reversal patterns are at an end stage, even if we did not dare to jump off plastic on the next medium-term trend of domestic speculators also may not want to miss this opportunity and the first wave Day in the city or out of plastic, of course, even so, the operational point of the market is still a reasonable break after the return of the pilot, in particular international Jiaojia pending cases, the risk still need to do more than reasonable control, once again back to the market 20000 to the following, more will continue to be a very unwise choice.

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