BANGKOK, Oct 28 (Reuters) – Tokyo rubber futures ended higher
in volatile trade on Tuesday, bouncing back from a three-year low
in early trade on the back of rising oil prices and the weaker
yen.
* The April 2009 contract on the Tokyo Commodity Exchange
<0#JRU:> rose 4 yen, or 2.4 percent, to settle at 166.5 yen
($1.76) per kg.
* It rebounded from an intra-day low of 153.4 yen, the lowest
since June 2005, to hit a high of 177.2 yen as oil rallied to
above $64 a barrel.
* The yen pulled away from a 13-year high against the dollar
on Tuesday as a 6 percent surge in Tokyo shares and growing
caution about the possibility of official intervention halted the
Japanese currency’s surge.
* A weaker yen makes a dollar-based commodity, including
rubber, expensive and usually spurs investors into speculative
buying on the Tokyo rubber futures market.
* “But TOCOM gains were expected to be capped by
profit-taking,” one dealer said.
* The Agriculture Ministry of Thailand, the world’s biggest
rubber producer, said on Monday it planned to cut production by
700,000 tonnes in the six months starting from October to shore
up prices. [ID:nBKK391607]
However, that news had little impact on the TOCOM market.
* On the physical front, rubber prices fell due to fears of
falling demand. However, the falls were expected to be limited as
falling supply in producing countries should provide some
support, traders said.

PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH MONDAY
Grade Price Change
Thai RSS3 (Dec) $1.75/kg -$0.10
Thai RSS3 (Jan) $1.75/kg -$0.10
Thai STR20 (Dec) $1.75/kg -$0.10
Thai STR20 (Jan) $1.75/kg -$0.10
Malaysia SMR20 (Dec) $1.75/kg -$0.10
Malaysia SMR20 (Jan) $1.75/kg -$0.10
Indonesia SIR20 (Dec) $0.74/lb -$0.07
Indonesia SIR20 (Jan) $0.74/lb -$0.07
Thai USS3 57 baht/kg -2 baht
Thai 60-percent latex (drums, Dec) $1,400/tonne unchanged
Thai 60-percent latex (bulk, Dec) $1,250/tonne unchanged
($1=34.92 baht)
($1=94.39 Yen)

Source:  Reuters

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