BANGKOK, Nov 5 (Reuters) – The key Tokyo rubber futures
contract ended 6.3 percent lower in volatile trade on Wednesday,
shedding early gains due to stop-loss selling fuelled by a
reversal in oil prices.
* The benchmark rubber contract on the Tokyo Commodity
Exchange <0#JRU:> for April delivery fell 12.2 yen, or 6.3
percent, to settle at 181.4 yen ($1.83) per kg.
The benchmark turned round after an early 7.9 percent gain as
speculators liquidated contracts to avoid risks after seeing oil
prices fall.
* Oil fell more than 3 percent towards $68 a barrel,
reversing part of the previous day’s surge after Democrat Barack
Obama’s victory in the U.S. presidential election gave a boost to
the dollar.
* Rubber prices often move in line with oil prices as both
markets are sensitive to demand from the automobile sector.
* On the physical front, rubber prices rose in line with
TOCOM, but trading was not busy, with buyers generally waiting to
buy when prices dip, traders said.

PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH TUESDAY
Grade Price Change
Thai RSS3 (Dec) $2.00/kg +$0.05
Thai RSS3 (Jan) $2.00/kg +$0.05
Thai STR20 (Dec) $1.95/kg +$0.05
Thai STR20 (Jan) $1.95/kg +$0.05
Malaysia SMR20 (Dec) $1.95/kg +$0.05
Malaysia SMR20 (Jan) $1.95/kg +$0.05
Indonesia SIR20 (Dec) $0.87/lb +$0.02
Indonesia SIR20 (Jan) $0.87/lb +$0.02
Thai USS3 61 baht/kg + 1 baht
Thai 60-percent latex (drums, Dec) $1,550/tonne unchanged
Thai 60-percent latex (bulk, Dec) $1,450/tonne +$50
($1=34.88 baht)
($1=99.05 YEN)

Source:  Reuters

Physical prices of Thai USS3 rubber rise on tight availability following recent rain, says trader in Phuket; adds recent gains in cash RSS3 prices also helps bolster sentiment, though buyers largely on sidelines amid ongoing volatility. Thai USS3 traded on Hat Yai Central Rubber Market at THB60.50/kg in Tuesday”s morning, afternoon sessions vs THB60.11/kg in both yesterday”s sessions. (ANJ)

Source:  Dow Jones Newswires

BANGKOK, Nov 4 (Reuters) – The key Tokyo rubber futures
contract rose 6 percent on Tuesday on easing concerns that a
global recession might hit demand, while a weaker yen inflated
yen-based futures prices.
* The benchmark rubber contract on the Tokyo Commodity
Exchange <0#JRU:> for April delivery rose 11.1 yen, or 6 percent,
to settle at 193.6 yen ($1.95) per kg.
Tokyo rubber futures reversed last week’s losses when trading
resumed on Tuesday after Monday’s national holiday.
* The TOCOM rubber market fell last week as investors fled
riskier assets, including commodities, due to concerns about the
global credit crunch, sending rubber as low as 153.4 yen, its
lowest level since July 2005.
* The dollar gained ground ahead of the U.S. presidential
election. By 0835 GMT, it stood around 99.15 yen , having
recovered from a 13-year low below 91 yen last month.
* Japan’s benchmark Nikkei share average <.N225> ended up
6.27 percent. [.T] Higher share prices could push TOCOM to test
the next resistance level at 200 yen, traders said.
* Planned steps to curb rubber production have had little
impact on the TOCOM market.
* The world’s top three rubber-producing countries agreed on
Friday to cut output by 3 percent next year in a bid to shore up
prices hit by dwindling demand and growing fears of a global
recession. [ID:nSP168606]
* Tokyo rubber futures are expected to tumble further in
November because of falling auto sales and fears of a global
economic recession, a Reuters poll showed on Monday.
[ID:nBNK352960]
* On the physical front, rubber prices were higher, tracking
TOCOM, but trading remained thin, traders said.

PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH FRIDAY
Grade Price Change
Thai RSS3 (Dec) $1.95/kg +$0.10
Thai RSS3 (Jan) $1.95/kg +$0.10
Thai STR20 (Dec) $1.90/kg +$0.07
Thai STR20 (Jan) $1.90/kg +$0.07
Malaysia SMR20 (Dec) $1.90/kg +$0.05
Malaysia SMR20 (Jan) $1.90/kg +$0.05
Indonesia SIR20 (Dec) $0.85/lb +$0.05
Indonesia SIR20 (Jan) $0.85/lb +$0.05
Thai USS3 60 baht/kg + 3 baht
Thai 60-percent latex (drums, Dec) $1,550/tonne +$100
Thai 60-percent latex (bulk, Dec) $1,400/tonne +$50
($1=34.96 baht)
($1=99.05 Yen)

Source:  Reuters

SINGAPORE, Nov 3 (Reuters) – Asian rubber exporters are negotiating contracts with Chinese buyers after a fall in prices led to defaults on up to 80,000 tonnes of cargoes, and some sellers may want to offer discounts, industry sources said on Monday.
Chinese buyers failed to settle payments for between 60,000 and 80,000 tonnes of rubber from Asia’s producing countries and asked for cheaper prices, said Suharto Honggokusumo, executive director of the Indonesian Rubber Association.
“Some traders and end-users are negotiating to reschedule shipments. There are also price negotiations. It’s ongoing. We haven’t found a win-win solution yet. We will lose money if we cut down the prices,” he told Reuters from Jakarta, clarifying earlier remarks that only Indonesian shippers had been affected.
Rubber prices, which spiked to a 56-year peak around $3.25 a kg in July on record high oil, have been battered by heavy selling as the U.S. economy slows and car sales ease in the United States, China and Japan and Europe.
Thailand’s benchmark grade RSS3 hovered at $1.85 a kg, down 40 percent from its July peak. Dealers said exporters in Thailand, Indonesia and Malaysia, which account for 70 percent of global output, were affected by defaults from Chinese buyers.
Indonesia’s tyre-grade SIR20 for December delivery was traded late on Friday at 79 U.S. cents per pound ($1.74 a kg) free on board Palembang in South Sumatra. There were also deals at 81 cents per pound FOB Belawan in North Sumatra.
There were no reports of deals for Thai rubber and Malaysia’s SMR20 grade.
“What will happen is sellers will agree to sell rubber at a discount. It’s better than not being able to sell anything,” said a dealer in Indonesia’s main growing island of Sumatra.
“It’s scary to do business with China. They know they are the biggest buyer and they seem to think they can do anything,” he said.
China, the world’s largest rubber consumer, may also fail to settle payments with exporters from Vietnam and Cambodia, said dealers.
“I don’t think this is an easy problem to fix. The market hasn’t stopped coming down. It will be difficult to talk to the buyers,” said a dealer in Thailand’s southern city of Hat Yai.
“You can’t do anything if buyers don’t open the letter of credit. People are talking about a huge amount of defaulted cargoes, of around 100,000 tonnes,” he said.
Thailand, Indonesia and Malaysia agreed on Friday to jointly cut output by 215,000 tonnes but dealers said the move was unlikely to boost the market already hit by dwindling demand and growing fears of a global recession. [ID:nSP168606]
Tokyo rubber futures, which set the tone for the physical market, shrugged off the news to end 4 percent lower on Friday <0#JRU:>. The market was closed on Monday for a holiday.
The ASEAN Rubber Business Council (ARBC) has also urged its members to blacklist the defaulters, settle disputes amicably or by arbitration and avoid selling rubber at discounted prices, but dealers were doubtful.
“I guess it all depends on buyers and sellers. It may not be encouraged by the ARBC but it’s not an offence if they offer a discount. It’s up to them,” said a regional dealer.
The ARBC groups the world’s three main producers plus Singapore, Vietnam and Cambodia.

Source:  Reuters