TOKYO, Sept 22 (Reuters) – Tokyo rubber futures closed up
more than 1 percent at a one-week high on Monday as crude oil’s
massive gains spurred short-covering after investment funds cut
positions last week amid a financial market maelstrom.
* The key Tokyo Commodity Exchange rubber contract for
February 2009 delivery <0#JRU:> closed up 4.7 yen, or 1.6
percent, at 296.6 yen per kg, down a touch from the intraday peak
of 298 yen, the highest level since Sept 12.
* The technical trend improved after the contract broke
through the five-day moving average of about 289.1 yen.
* It also briefly moved above the 10-day average of 297.2
yen, which was closely followed by traders.
* Traders were also watching if the key contract could fill
in a chart gap to 300.0 yen created when it dropped sharply on
Sept. 16.
* TOCOM rubber at one point lost about 5 percent last week as
U.S. financial turmoil rocked global markets, prompting investors
to shift out of risk assets, including rubber.
* TOCOM rubber’s open interest, or the number of contracts
outstanding, fell to 35,429 contracts as of Friday, down about 12
percent for the week.
* Physical rubber prices were gaining support amid lingering
concerns over supplies, while there was demand from China and the
Middle East, a trader in Thailand’s Hat Yai said.

PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH FRIDAY
Grade Price Change
Thai RSS3 (Oct) $2.87/kg +$0.02
Thai RSS3 (Nov) $2.87/kg +$0.02
Thai STR20 (Oct) $2.87/kg +$0.02
Thai STR20 (Nov) $2.87/kg +$0.02
Malaysia SMR20 (Oct) $2.84/kg +$0.04
Malaysia SMR20 (Nov) $2.84/kg +$0.04
Indonesia SIR20 (Oct) $1.27/lb +$0.01
Indonesia SIR20 (Nov) $1.27/lb +$0.01
Thai USS3 92 baht/kg +2 bahts
Thai 60-percent latex (drums, Oct) $1,990/tonne unchanged
Thai 60-percent latex (bulk, Oct) $1,850/tonne unchanged

Source:  Reuters

TOKYO, Sept 19 (Reuters) – Key Tokyo rubber futures rose about 2 percent on Friday to close above 290 yen as higher crude oil prices and a weak yen outweighed concerns of a possible decline in demand and spurred buying.
* The key Tokyo Commodity Exchange rubber contract for February delivery <0#JRU:> finished at 291.9 yen per kg, up 5.6 yen or about 2 percent, but off an intra-day high of 292.8 yen. The contract briefly turned lower to hit a trough of 285.9 yen, down 0.4 yen from Thursday’s close.
* TOCOM rubber at one point lost about 5 percent this week in volatile trade after the U.S. financial turmoil rocked global markets, including oil, a key factor shaping trade in the commodity needed to manufacture tyres.
* Traders have said that physical supply tightness was providing support for TOCOM rubber, as illustrated in the market’s backwardation, a situation that occurs when cash prices are higher than those of futures contracts.
* One trader said there was less support for future months, including the benchmark, which is the most distant of the six listed TOCOM rubber contracts.
* “You have the (poor) economic situation and funds closing their positions, and the pressure from that is mostly concentrating on the future months making it more difficult to rise,” he said.
* U.S. crude for October delivery jumped to briefly touch $99.88 per barrel on Friday on U.S. and Nigerian supply concerns. [O/R]
* The dollar rose briskly against the yen, trading around 107.60 yen versus 105.60/65 yen late in New York, boosted by news that the U.S. government is considering a comprehensive plan to deal with the credit crisis. [USD/]

PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH THURSDAY
Grade Price Change
Thai RSS3 (Oct) $2.85/kg unchanged
Thai RSS3 (Nov) $2.85/kg unchanged
Thai STR20 (Oct) $2.85/kg unchanged
Thai STR20 (Nov) $2.85/kg unchanged
Malaysia SMR20 (Oct) $2.80/kg -$0.02
Malaysia SMR20 (Nov) $2.80/kg -$0.02
Indonesia SIR20 (Oct) $1.26/lb -$0.01
Indonesia SIR20 (Nov) $1.26/lb -$0.01
Thai USS3 90 baht/kg -1 bahts
Thai 60-percent latex (drums, Oct) $1,990/tonne unchanged
Thai 60-percent latex (bulk, Oct) $1,850/tonne unchanged

Source:  Reuters

[Dow Jones] Tocom rubber futures settle up on firm crude, with backwardation increasing due to low domestic stockpiles, recent low output in key producing countries, says trader in Tokyo. Adds sentiment improving following sharp declines early this week, with test of Y300/kg possible next week. Tocom likely to find strong resistance at Y285/kg, although potential for volatility remains as market will continue to be heavily influenced by outside factors. Benchmark February RSS3 contract settles Y5.6 higher at Y291.9/kg. (ANJ)

Source: Dow Jones Newswires

TOKYO, Sept 18 (Reuters) – Tokyo rubber futures ended a touch higher on Thursday after a day of extreme price swings as they tracked gold’s rollercoaster ride through positive and negative territory.

* The key Tokyo Commodity Exchange rubber contract for February delivery <0#JRU:> ended the day up 0.2 yen or 0.7 percent at 286.3 yen per kg, after earlier peaking at 292.7 yen, up 2.3 percent.
At the other extreme it had slipped 0.9 percent to an intraday low of 283.4 yen.

* Tokyo rubber futures were rising on the strength of gold, rather than any fresh incentives of their own, said Koji Suzuki, a senior analyst at SBI Futures Co Ltd.

* “Gold’s rise comes from a flight-to-quality, but this does not apply to rubber’s climb, which should be seen as simply tracking the precious metal’s rise,” he said.

* Traders have said that there is some strength in rubber’s fundamentals, such as supply tightness, but this has fallen to the wayside in the face of the global financial woes that have rocked commodities markets.
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Asian cash rubber prices little changed in very thin trade, say traders. Wet weather continues to disrupt plantation work in Thailand, Malaysia, keeps raw material prices well supported; as a result, processors reluctant to sell at current prices, says trader in Singapore. “Consumers are also very quiet; China was bidding around 283 cents/kg for SMR20 today but there”s no way sellers can afford those prices as latex supply is tight because of the rain,” says trader.

Source:  Dow Jones Newswires