Tocom rubber futures settle limit down amid a broad commodities selloff on back of wider global economic worries, while weak rubber fundamentals add further pressure, says trader. Adds minor rebound possible in near term but retracement back down to Y240/kg also likely as market continues to be heavily influenced by outside factors. Thin trade expected tomorrow due to closure of markets in Singapore for public holiday, while absence this week of China due to holidays also to damp trade for remainder of week. Benchmark Mar RSS3 contract settles Y16 lower at Y250.9/kg.

Source:  Dow Jones Newswires

Tocom rubber futures settle lower, benchmark at six-month low, as funds continue to liquidate long positions amid an increasingly bearish outlook, says trader. Adds further downside now highly likely due to absence this week of world’’s biggest consumer, China, for holiday; backwardation easing, with nearby contracts sharply lower, indicative of slowing demand, increasing production in Thailand, Malaysia; Tocom likely to test next support at Y265/kg in coming sessions. Benchmark March RSS3 contract settles Y9.5 lower at Y266.9/kg.

Source: Dow Jones Newswires

Tocom rubber futures settle lower as weak fundamental outlook, general weakness throughout commodities complex continue to weigh on sentiment, says Mitsubishi Futures Corporation analyst Shuji Sugata. Adds further downside likely in coming sessions, with world’’s biggest consumer China absent next week for holidays; Tocom likely to find immediate technical support at Y282.6/kg, though breach of Y280/kg would trigger stop-losses, lead to further sharp declines. New benchmark March RSS3 contract settles at Y287.2/kg after opening this morning at Y287.5/kg. Trade thin with just 22,896 lots exchanged.

Source:  Dow Jones Newswires

TOKYO, Sept 24 (Reuters) – Key Tokyo rubber futures closed down about 2 percent but a touch above the day’s low on Wednesday, as economic uncertainty fanned by the U.S. financial crisis rekindled fears about demand for the industrial commodity.

* The key Tokyo Commodity Exchange rubber contract for February 2009 delivery <0#JRU:> fell to an intraday low of 288.5 yen per kg, down 8.1 yen or 2.7 percent from Monday. It closed at 290.1 yen.

* Tokyo financial markets were closed on Tuesday for a national holiday.

* “Funds are reluctant to invest in risk assets, so rubber is under pressure. General sentiment for rubber is still very bearish,” said Jun Nishimuta, analyst at Kanetsu Asset Management in Tokyo.

* “Concerns about the U.S. economy have not been erased, and the market just doesn’t have the strength to move above 300 yen,” a second analyst said.

* The benchmark contract for rubber, which is mostly used to produce tyres, has been trading below 300 yen for about a week.

* Key TOCOM rubber faced some technical resistance at its 10-day moving average of about 295.5 yen, though the market was keen to see whether the key contract could fill in a chart gap to 300.0 yen created when it dropped sharply on Sept. 16.

* The spot September contract expired at 380.1 yen a kg with 6 lots of deliveries, in the highest expiry price and the lowest delivery volume since November 1984 when three exchanges for textiles, gold and rubber were merged to form TOCOM.

* “There are traders that want rubber, but there are just not enough physical supplies,” an official at Kanetsu Asset said.

* He said that supplies depleted by wintering when latex production falls usually return to normal at least by mid-May, but that the process has been particularly slow this year.

* Strong oil prices and firmer physical rubber prices due to tight supplies were providing some support to TOCOM rubber futures.

* U.S. light crude for November delivery rose above $108 a barrel after settling at $106.61 on Tuesday, lifted by a forecast of a drop in U.S. crude stocks. [O/R]

* The dollar was trading at 106.15 yen versus late New York levels of 105.71/76 yen. [USD/]

PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH MONDAY
Grade Price Change
Thai RSS3 (Oct) $2.87/kg unchanged
Thai RSS3 (Nov) $2.87/kg unchanged
Thai STR20 (Oct) $2.87/kg unchanged
Thai STR20 (Nov) $2.87/kg unchanged
Malaysia SMR20 (Oct) $2.87/kg +$0.03
Malaysia SMR20 (Nov) $2.87/kg +$0.03
Indonesia SIR20 (Oct) $1.28/lb +$0.01
Indonesia SIR20 (Nov) $1.28/lb +$0.01
Thai USS3 91 baht/kg -1 baht
Thai 60-percent latex (drums, Oct) $1,950/tonne -$40
Thai 60-percent latex (bulk, Oct) $1,850/tonne -$50

Source:  Reuters

[Dow Jones] Asian cash rubber prices little changed in sluggish trade, as processors, buyers keen to see how Tocom reopens Wednesday, traders say. Focus will also remain firmly on crude oil price movements, with a dip below $100/bbl likely to pressure rubber, particularly as production returns to normal levels in Thailand, Malaysia following recent rain-induced delays, says trader in Singapore.

Source:  Dow Jones Newswires