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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