This entry was posted on Wednesday, October 1st, 2008 at 7:19 pm and is filed under Rubber News. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.
Asian rubber futures settled higher on a technical rebound Wednesday, though volume was thin with holidays in China, Singapore, Indonesia and Malaysia damping interest elsewhere, traders said.
On Tocom, rubber futures settled sharply higher after yesterday”s steep fall left the market in oversold territory, said a trader in Tokyo.
However, the weak overall sentiment remains and any further gains in coming sessions will likely encourage funds to sell into rallies amid a general lack of bullish fundamental news, he said.
“Tocom remains cheaper than physical (market prices), though the potential for further volatility remains as the market will continue to be heavily influenced by outside factors. Concerns surrounding the state of the global economy and the potential for weakening demand for rubber will likely cap the upside around Y265 a kilogram,” he said.
Tocom”s benchmark March RSS3 contract settled Y9.9 higher at Y260.8 a kilogram.
On C-Com, rubber futures settled higher on short covering, further helped by gains in the dollar against the yen, said a trader in Japan. Trade was thin with just 40 lots exchanged.
RSS3 futures on the Agricultural Futures Exchange of Thailand settled up, again on short covering, supported by firmer crude oil prices and strong gains on the bellwether Tocom, said a trader in Bangkok.
Asian Rubber Futures
Oct 1 Change from
Sep 30 Close
Tocom Mar RSS3 Y260.8/kg Up Y9.9
C-Com Mar RSS3 Y258.1/kg Up Y0.2
Shanghai Jan SCR5 Market Closed -
Thai May RSS3 THB86.60/kg Up THB1.50
Sicom Oct RSS3 Market Closed -
Sicom Oct TSR20 Market Closed -
USS3 Oct THB78.50/kg THB78.39/kg
Source: Dowjones