TOKYO, Oct 24 (Reuters) – Benchmark rubber futures fell by the daily 16 yen limit on Friday as falling stocks markets deepened concerns about demand, while a jump in the yen versus the dollar weighed on yen-based futures prices.
The key Tokyo Commodity Exchange rubber contract for March delivery <0#JRU:> was down 8.4 percent at 175.2 yen per kg, compared with Thursday’s trough of 164.9 yen.

Source:  Reuters

TOKYO, Oct 23 (Reuters) – Tokyo rubber futures closed almost 6 percent higher on Thursday in roller coaster trade as active short-covering set in after a sell-off in Japanese shares ran out of steam and concerns eased about global demand.

* The key Tokyo Commodity Exchange rubber contract for March delivery <0#JRU:> closed up 10.5 yen or 5.8 percent at 191.2 yen per kg. It earlier fell as low as 164.9 yen, down 14 yen from the previous close and flirting with the daily 16-yen limit.

* Just before the close, the March contract rose as high as 196.5 yen.

* Tokyo’s Nikkei share average .N225 trimmed earlier losses and finished with a drop of 2.5 percent, recovering partly on a report that the U.S. government was mulling ways to limit home foreclosures. [ID:nBNG389655]

* But it is unclear if the TOCOM rubber market has hit a bottom and will recover.

* Takashi Ogura, director at Kanetsu Asset Management Co in Tokyo, said the market would easily test 160 yen unless a liquidity crunch in financial markets shows significant signs of improvement. “Sentiment would not change until a floor is confirmed as quite solid.”

* Fiat (FIA.MI: Quote, Profile, Research) and Hyundai Motor Co (005380.KS: Quote, Profile, Research) added to the gloom surrounding automakers on Thursday with bleak forecasts for next year as the global financial crisis takes its toll. [ID:nL0464508]

* Concern that demand would shrink amid growing fears of a global recession has caused TOCOM rubber to slide about 40 percent from early September to a trough of 159.3 yen on Friday, the lowest since July 2005.

* It later staged a rally to briefly top 200 yen on a temporary gain in oil prices.

* U.S. crude oil CLc1 edged up from a 16-month low marked the previous day as investors shifted focus to an emergency OPEC meeting expected to consider supply cuts. [O/R]

* Activity in the physical market was subdued as it was a public holiday in Thailand, the world’s biggest rubber producer.

Source:  Reuters

TOKYO, Oct 22 (Reuters) – Key Tokyo rubber futures closed down nearly 6 percent on Wednesday, but off the intraday low when prices fell by the 16 yen daily limit after a tumble in crude oil prices pulled the plug on a three-day rally.
* The key Tokyo Commodity Exchange rubber contract for March delivery <0#JRU:> finished at 180.7 yen per kg, down 11.3 yen or 5.9 percent, after earlier falling 16 yen to an intraday low of 176 yen.
* Tokyo rubber has been on a rollercoaster ride this week with prices soaring by the 16 yen daily limit on Monday and Tuesday as part of a three-day rally that helped lift the value of the industrial commodity by over 20 percent to above 200 yen.
* It has already lost about half those gains.
* The recent technical rally lacks momentum because there are few factors distinctive to the rubber market to help support it, a Tokyo broker said.
* “I think the market might fall even further,” he said.
* Mounting concerns that demand would shrink amid growing fears of a global recession has caused TOCOM rubber to slide about 40 percent from early September to a trough of 159.3 yen on Friday, the lowest since July 2005.
* It later staged a rally but traders have voiced doubts about the strength of the recovery, noting that funds have fled the market in droves.
* In fresh bearish news for the market, a newspaper report said Toyota Motor Corp <7203.T> plans to say its annual profit will likely halve in the financial year to next March due to a stronger yen and slowing sales owing to the financial crisis. [ID:nT32215]
* A major use for rubber is the production of tyres for automobiles.
* U.S. crude oil futures fell over $3 to trade below $70 a barrel on mounting worries that output cuts by OPEC will not be enough to offset slackening energy demand among leading consumers. [O/R]
* Physical rubber prices mostly fell, reflecting the decline on the Tokyo futures market.
* A Thai trader said a January RSS3 cargo was traded on Tuesday at $1.83, while a January SIR20 cargo changed hands at $0.80.
PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH TUESDAY
Grade Price Change
Thai RSS3 (Dec) $1.82/kg -$0.08
Thai RSS3 (Jan) $1.82/kg unavailable
Thai STR20 (Dec) $1.82/kg -$0.08
Thai STR20 (Jan) $1.82/kg unavailable
Malaysia SMR20 (Dec) $1.82/kg -$0.08
Malaysia SMR20 (Jan) $1.82/kg unavailable
Indonesia SIR20 (Dec) $0.78/lb -$0.07
Indonesia SIR20 (Jan) $0.78/lb unavailable
Thai USS3 57 baht/kg -3 bahts
Thai 60-percent latex (drums, Dec) $1,400/tonne unavailable
Thai 60-percent latex (bulk, Dec) $1,250/tonne unavailable

Source:  Reuters

[Dow Jones] Tocom rubber futures hit Y16 upper trading limit for second consecutive day, with benchmark contract breaching Y200/kg psychological resistance as technical rebound continues, firmness in crude oil prices lends further support, trader says; adds further gains expected, though rally primarily on back of market being oversold; likely to find strong technical resistance at Y212/kg, while potential for heavy volatility remains as market will continue to be influenced by outside factors. At 0128 GMT benchmark March RSS3 contract Y16 higher at Y201.2/kg. (ANJ)

Source:  Dow Jones Newswires

[Dow Jones] Tocom rubber futures hit Y16 upper trading limit in afternoon session on technical rebound, helped by firmer crude oil prices. Room for further gains in near term following recent slump, though longer-term fundamental outlook remans weak, while market will also continue to take cues from wider financial market turmoil in days, weeks ahead, traders say. At 0559 GMT, benchmark Mar RSS3 contract up Y16 at Y185.2/kg. (ANJ)

Source:  Dow Jones Newswires