Asian cash rubber prices lower, weighed down by steep falls on influential futures, while buying interest remains muted on expectations of further falls, traders say. Sellers becoming increasingly wary of defaults by buyers who have bought forward, as prices continue to slide, with problem likely to worsen if prices continue in downtrend, says trader in Singapore. For a daily breakdown of cash prices for all rubber grades, keyword search ASIAN PHYSICAL RUBBER PRICES to see the item. (ANJ)

Source:  Dow Jones Newswires

BANGKOK, Oct (Reuters) – Tokyo rubber futures tumbled to the
lowest level since September 2005 on Wednesday on fears of weaker
demand caused by economic recession.
* Falls on stock markets and weaker oil prices added to the
pressure on rubber prices.
* The benchmark rubber contract on the Tokyo Commodity
Exchange <0#JRU:> for March delivery fell 15 yen, or 7.8 percent,
to settle at 178.0 yen ($1.76) per kg.
At one stage it fell by the 16 yen daily limit to 177.1 yen,
the lowest since September 2005.
* On Tuesday, the March contract briefly rose above the
psychologically key level of 200 yen, mainly on short-covering,
but failed to stay above that level, a factor worsening the
technical chart outlook.
* Overshadowing the TOCOM market, Japan’s benchmark Nikkei
share average <.N225> edged up 1.06 percent on Wednesday after
slipping as low as 1.44 percent in early trade.
* Oil prices stayed below $78 a barrel after falling more
than 3 percent in New York on Tuesday on concerns the global
economy could slip into recession. [O/R]
* Dealers said they expected TOCOM prices to fall further
with 185 yen was seen as a strong resistance.
* The world’s top three rubber-producing countries –
Thailand, Indonesia and Malaysia — are scheduled to hold a
two-day meeting from Thursday in Bangkok in a bid to control
output and reverse the downtrend in prices. [ID:nBKK397945].
* In the physical market, rubber prices fell further, with
Thai traders keen to sell despite thin demand.
Physical trade remained under pressure that Chinese buyers
have defaulted on more than 10,000 tonnes of rubber from
Thailand, Indonesia and Malaysia after prices fell more than 30
percent.

PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH TUESDAY
Grade Price Change
Thai RSS3 (Nov) $1.83/kg -$0.02
Thai RSS3 (Dec) $1.83/kg -$0.02
Thai STR20 (Nov) $1.82/kg -$0.03
Thai STR20 (Dec) $1.82/kg -$0.03
Malaysia SMR20 (Nov) $1.85/kg unchanged
Malaysia SMR20 (Dec) $1.85/kg unchanged
Indonesia SIR20 (Nov) $0.84/lb -$0.02
Indonesia SIR20 (Dec) $0.84/lb -$0.02
Thai USS3 55 baht/kg -2 baht
Thai 60-percent latex (drums, Nov) $1,300/tonne -$50
Thai 60-percent latex (bulk, Nov) $1,200/tonne unchanged
($1=34.10 Baht)
($1=101.29 Yen)

Source:  Reuters

BANGKOK, Oct 14 (Reuters) – Tokyo rubber futures ended
slightly higher in volatile trade on Tuesday as rebounding stock
markets and hopes for an easing of the credit crisis spurred
short-covering.
* But gains were limited due to profit-taking and selling
that set in after prices failed to stay above the psychological
level of 200 yen, dealers said.
* The benchmark rubber contract on the Tokyo Commodity
Exchange for March delivery <0#JRU:> rose 2.1 yen, or 1 percent,
to settle at 193.1 yen ($1.89) per kg.
The benchmark rose to an intra-day high of 205.4 yen in early
trade on the back of short-covering, before falling as low as
188.5 yen, the lowest since November 2006.
* Japan’s benchmark Nikkei share average <.N225> soared more
than 14 percent after Wall Street rallied on Monday following
pledges by the U.S. and other governments to pour cash into
struggling banks and restore confidence in the global financial
system. [.T]
* “TOCOM sentiment was not so good when prices failed to
break above 200 yen and that caused selling,” one dealer said.
* Underlining hopes over global demand, oil prices gained
ground. U.S. crude futures rose more than $2 to $83.23 a
barrel on the Globex electronic trading platform on Tuesday.
[O/R]
* In the physical rubber market, steep falls in prices had
stoked fears of defaults on shipments. [ID:nBKK217789]
* Thai RSS3 grade, which is often used as a benchmark for
physical prices, was quoted at $2 per kg, down from $2.4 last
week and $2.98 a month ago. [ID:nSP347520]
* The world’s top three rubber-producing countries –
Thailand, Indonesia and Malaysia — are scheduled to hold a
two-day meeting from Thursday in Bangkok in a bid to control
output and reverse the drop in prices. [ID:nBKK397945]

PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH FRIDAY
Grade Price Change
Thai RSS3 (Nov) $1.85/kg -$0.15
Thai RSS3 (Dec) $1.85/kg -$0.15
Thai STR20 (Nov) $1.85/kg -$0.15
Thai STR20 (Dec) $1.85/kg -$0.15
Malaysia SMR20 (Nov) $1.85/kg -$0.15
Malaysia SMR20 (Dec) $1.85/kg -$0.15
Indonesia SIR20 (Nov) $0.86/lb -$0.08
Indonesia SIR20 (Dec) $0.86/lb -$0.08
Thai USS3 57 baht/kg -8 baht
Thai 60-percent latex (drums, Nov) $1,350/tonne -$100
Thai 60-percent latex (bulk, Nov) $1,200/tonne -$100
($1=34.09 Baht)
($1=102.43 Yen)
Source:  Reuters

Tocom rubber futures end up midday, though off early highs, with sentiment lifted by strong gains on stock markets, firmer crude oil, says trader; adds sentiment improves following two weeks of sharp losses though market watching closely whether March benchmark contract can end today above psychologically important Y200/kg mark. Benchmark Mar RSS3 contract ends midday at Y199.9/kg, up Y8.9 from Friday”s close (yesterday was a holiday) after touching intraday high of Y205.4/kg in early trade. (ANJ)

Source:  Dow Jones Newswires

Asian cash rubber prices ease in thin volume Monday with very few trades reported as closure of bellwether Tocom for public holiday in Japan damps interest elsewhere, traders say. Buyers currently reluctant due to expectations prices will ease further still in coming days, while processors also not keen to sell at current prices, says trader in Singapore. Adds increase in deferments on shipments by buyers reported in recent days though most contracts settled by re-negotiation. For a daily breakdown of cash prices for all rubber grades, keyword search ASIAN PHYSICAL RUBBER PRICES to see the item. (ANJ)

Source:  Dow Jones Newswires