SINGAPORE, Nov 26 (Reuters) – Tokyo rubber futures fell for
the seventh trading day in a row on Wednesday, ending within
sight of its weakest in almost four years hit last week as oil
trimmed gains and worries about weakening demand persisted.
* The Thai government will buy rubber from farmers if prices
fall below $1 per kg, the deputy agriculture minister said on
Wednesday, after fears of a global recession sent prices of the
commodity to multi-year lows. [ID:nNBKK423102]
* The key Tokyo Commodity Exchange rubber contract for May
2009 delivery <0#JRU:> closed 1.8 yen per kg lower at 131.0 yen
after falling as low as 128 yen per kg.
* The benchmark contract tumbled to an intra-day low of 127.6
yen on Nov. 21, the lowest since January 2005, on falling oil and
fears that a global recession would badly hit demand for rubber.
* The market shrugged off news the the world’s top rubber
producers had cancelled Thursday’s planned meeting on prices
after anti-government protests closed Bangkok’s international
airport. [ID:nBKK423102]
* Oil slipped after rising above $51 a barrel. It
dropped nearly 7 percent on Tuesday, when data showed the U.S.
economy last shrank at its fastest pace in seven years,
highlighting slowing demand in the world’s largest oil consumer.
[O/R]
* Global rubber consumption is expected to drop 3.3 percent
in 2009, the International Rubber Study Group (IRSG) said on
Wednesday, revising down its previous forecast of 4.2 percent
growth because of the world economic slowdown. [ID:nBKK372091]
* Japan’s crude rubber inventories amounted to 5,280 tonnes
as of Nov 10, down roughly 1.3 percent from the end of October,
Rubber Trade Association of Japan data showed on Tuesday.
[ID:nT300935]
* Dealers expected tight supplies in Southeast Asia to offer
support for the physical prices, which have been under pressure
from selling in Tokyo.

PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH TUESDAY
Grade Price Change
Thai RSS3 (Jan) $1.50/kg unchanged
Thai RSS3 (Feb) $1.50/kg unchanged
Thai STR20 (Jan) $1.50/kg unchanged
Thai STR20 (Feb) $1.50/kg unchanged
Malaysia SMR20 (Jan) $1.50/kg unchanged
Malaysia SMR20 (Feb) $1.50/kg unchanged
Indonesia SIR20 (Jan) $0.66/lb unchanged
Indonesia SIR20 (Feb) $0.66/lb unchanged
Thai USS3 44 baht/kg n/a
Thai 60-percent latex (drums, Jan) $1,200/tonne n/a
Thai 60-percent latex (bulk, Jan) $1,100/tonne n/a

Source:  Reuters

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