BANGKOK, Oct 10 (Reuters) – Tokyo rubber futures fell by the
16-yen daily limit, or more than 7 percent, to a nearly 2-year
low on Friday as fears of a global recession and weaker demand
triggered heavy sales ahead of a long weekend.
* The benchmark rubber contract on the Tokyo Commodity
Exchange <0#JRU:> for March delivery fell 15.9 yen, or 7.7
percent, to settle at 191.0 yen ($1.93) per kg.
It fell by 16-yen daily limit to an intraday low at 190.9
yen, the lowest since Dec 2006.
* “Players sold contracts heavily after prices fell below 200
yen and I couldn’t figure out what level should be a strong
support because prices fell very sharp and very fast,” one dealer
said.
* TOCOM rubber will be closed on Monday for a holiday and
trading will resume on Tuesday.
* Japan’s crude rubber inventories fell 10 percent to 4,358
tonnes in the 10 days to Sept. 20, hitting another all-time low,
Rubber Trade Association of Japan data showed on Friday.
* But traders said the falling stock did not lend any support
to TOCOM prices as fears of weaker demand amid a recession still
weighed.
“Unless there are signs that the stock market stops falling,
I don’t think rubber prices will hit a floor and come back,” said
Takashi Ogura, a director at Tokyo-based Kanetsu Asset Management
Co.
* Japan’s benchmark Nikkei share average <.N225> tumbled
nearly 10 percent on Friday, in its biggest one-day drop since
the 1987 stock market crash. [.T]
* The dollar hit a six-month low below 98 yen on
Friday. Traders said many players do not believe a G7 meeting
this weekend in Washington could come up with an effective
solution to stabilise financial markets. [USD/]
* A stronger yen against the dollar deflates yen-based
prices, giving another blow to the TOCOM market.
* Underlining worries over global demand, oil prices extended
recent losses. U.S. crude futures fell to a 12-month low
below $84 a barrel on Friday. [O/R]
* Physical rubber prices tumbled in line with TOCOM as buyers
were holding back, waiting to buy at much lower prices, traders
said.

PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH THURSDAY
Grade Price Change
Thai RSS3 (Nov) $2.00/kg -$0.30
Thai RSS3 (Dec) $2.00/kg -$0.30
Thai STR20 (Nov) $2.00/kg -$0.30
Thai STR20 (Dec) $2.00/kg -$0.30
Malaysia SMR20 (Nov) $2.00/kg -$0.30
Malaysia SMR20 (Dec) $2.00/kg -$0.30
Indonesia SIR20 (Nov) $0.94/lb -$0.04
Indonesia SIR20 (Dec) $0.94/lb -$0.04
Thai USS3 65 baht/kg -4 baht
Thai 60-percent latex (drums, Nov) $1,450/tonne -$50
Thai 60-percent latex (bulk, Nov) $1,300/tonne -$100
($1=34.39 Baht)
($1=99.13 Yen)

Source:  Reuters

BANGKOK, Oct 9 (Reuters) – Tokyo rubber futures rose modestly
on Thursday on short-covering after prices fell near to a
psychological level of 200 yen, but weaker oil prices limited the
rises.
* The benchmark Tokyo Commodity Exchange rubber contract for
March delivery <0#JRU:> rose 1.5 yen, or 0.7 percent, to settle
at 206.9 yen ($2.05) per kg.
* On Wednesday the March contract fell by the daily 16-yen
limit to close at 205.4 yen, the lowest for any benchmark since
December 2006.
* But the bounce could be technical, given uncertainty over
demand for auto tyres, which are made from natural and synthetic
rubber, traders said.
* Underlining worries over global demand, oil prices stayed
weak. U.S. crude futures fell more than $1 to trade below $88 a
barrel in electronic trade on Thursday. [O/R]
* Weaker oil prices usually encourage the use of natural
rubber as it makes synthetic rubber, a petrochemical product,
expensive.
* Auto industry research firm Global Insight said on
Wednesday that U.S. auto sales would fall further in 2009 from
this year’s depressed levels as the escalating credit crisis hurt
consumer confidence. [ID:nN0850262]
* Yokohama Rubber Co <5101.T> may delay a planned output
expansion in China by a few months, the president of Japan’s
third-largest tyre maker said on Wednesday, as it braces for a
further slowdown in demand and a potential supply glut.
[ID:nT215578]
* The dollar was trading at around 100 yen , above a
six-month low of 98.60 yen hit the previous day. [USD/]
* Physical rubber prices rose slightly on Thursday, tracking
gains on TOCOM, but traders said the market outlook was still
weak, weighed down by fears over falling demand amid the global
financial crisis.

PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH WEDNESDAY
Grade Price Change
Thai RSS3 (Nov) $2.30/kg +$0.10
Thai RSS3 (Dec) $2.30/kg +$0.10
Thai STR20 (Nov) $2.30/kg +$0.10
Thai STR20 (Dec) $2.30/kg +$0.10
Malaysia SMR20 (Nov) $2.30/kg +$0.10
Malaysia SMR20 (Dec) $2.30/kg +$0.10
Indonesia SIR20 (Nov) $0.98/lb unchanged
Indonesia SIR20 (Dec) $0.98/lb unchanged
Thai USS3 69 baht/kg unchanged
Thai 60-percent latex (drums, Nov) $1,500/tonne -$90
Thai 60-percent latex (bulk, Nov) $1,400/tonne -$50
($1=34.41 Baht)
($1=101.19 YEN)

Source:  Reuters

TOKYO, Oct 8 (Reuters) – Key Tokyo rubber futures closed down by the 16 yen daily limit on Wednesday for the second time this week as more gloomy news about the economy stoked concerns over demand that kept rubber prices near a two-year low.
* The key Tokyo Commodity Exchange rubber contract for March delivery <0#JRU:> closed at 205.4 yen per kg, down 16 yen or about 7.2 percent,
* The dollar’s brief dive to a six-month low of around 99.61 yen , and tumbling crude oil prices also added to the downward pressure on TOCOM rubber.
* “Rubber prices are a reflection of the economic sentiment as well as the real state of the economy … and any rebound now would be purely technical,” a Tokyo-based broker said.
* In the latest news, Toyota Motor Corp <7203.T> may cut its annual profit outlook on sluggish global demand and a firmer yen, a company source said on Wednesday. [ID:nT69616]
* The broker said he would be watching to see if prices can hold above 200 yen, although this level could be breached on fresh news of the deteriorating state of the economy.
* TOCOM rubber has been hurt by an exodus of fund money from commodities, as well as fears that an economic downturn will hit demand for the commodity needed to produce tyres, which have been fuelled by news of falling automobile sales.
* Japan’s Nikkei average plunged 9.4 percent on Wednesday, its biggest drop since the 1987 stock market crash, as growing fears of a global recession led investors to wipe $250 billion off the value of Tokyo shares.
* U.S. light crude futures for November delivery briefly fell $4 to about $86 a barrel on fears that crude oil demand will fall. [O/R]
* Asian physical rubber prices have fallen in response to the plunge in futures prices, while many buyers refrained from trading actively in hopes for a further decline and more market stability.

PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH TUESDAY
Grade Price Change
Thai RSS3 (Nov) $2.20/kg -$0.10
Thai RSS3 (Dec) $2.20/kg -$0.10
Thai STR20 (Nov) $2.20/kg -$0.10
Thai STR20 (Dec) $2.20/kg -$0.10
Malaysia SMR20 (Nov) $2.20/kg -$0.10
Malaysia SMR20 (Dec) $2.20/kg -$0.10
Indonesia SIR20 (Nov) $0.98/lb -$0.02
Indonesia SIR20 (Dec) $0.98/lb -$0.02
Thai USS3 69 baht/kg – 1 baht
Thai 60-percent latex (drums, Nov) $1,590/tonne -$60
Thai 60-percent latex (bulk, Nov) $1,450/tonne -$50

Source:  Reuters

Tocom rubber futures settle down in very active, volatile trade. Benchmark contract sank to Y16 exchange-imposed lower daily trading limit to 22-month low of Y210.3/kg shortly after opening before rebounding strongly to intraday high of Y228.8/kg then surrendering gains. Focus will now be fixed on how equities, other commodities react overnight, says trader. Adds “everyone is watching the Y210/kg level; It”s too early to say whether that”s any kind of support, and it”s obviously too early to say that that”s the end of the whole crash, but if (Tocom) can hold above that level in the near term, which it did today, it”ll clearly help shore up sentiment, for the time being at least.” Benchmark Mar RSS3 contract eventually settles Y4.9 lower at Y221.4/kg. (ANJ)

Source:  Dow Jones Newswires

Tocom rubber futures fall by daily Y16 limit in afternoon session as funds continue unwinding positions amid increasingly bearish outlook, with global economic worries affecting sentiment throughout commodities complex, says trader. Adds further losses now likely, with breakthrough of next key psychological support at Y220 expected to pave way for test of October 2006 low of Y186.6/kg. At 0618 GMT, benchmark Mar RSS3 contract down Y16 at Y226.3/kg. (ANJ)

Source:  Dow Jones Newswires