Plantation index held on to the channel between 898 and 956, closing a touch above the upper channel line yesterday. To expect a resumption of the rally we need to see the levels of 973 and 986 being broken with strong volumes. Reduced Tea supply in the world markets, gave an upward pressure to the Prices in 2017. This impact will not ease off in the immediate future. The display of the volumes behaviour will certainly keep up the fierce competition amongst the Shippers and Traders through out 2018, with those who will have higher stocks in their warehouses with further buying power will be the winners. As far as the Plantation Companies are concerned their Sold volumes relative to the realized prices will be key to watch for the increased profitability. The biggest game changer will be the Rubber Price behaviour, which is not the best at the moment. This will be closely monitored....Rubber Monthly Prices:
There is a small up tick in December over November, yet there is a long way to go.
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