BANGKOK, Dec 19 (Reuters) – Thailand’s 2009 rubber exports
are expected to fall 10 percent from this year due to weak demand
from the auto industry and a pledge by top producing countries to
cut sales, the head of its main industry body said on Friday.
“Next year, our rubber exports are likely to drop by 300,000
tonnes from the 2.7 million tonnes we expect to sell this year,”
Luckchai Kittipol, president of the Thai Rubber Association, told
Reuters.
“Our aim is to cut exports but the key factor is sluggish
demand next year,” he said.
Last month, the International Rubber Study Group cut its 2009
estimates for global rubber consumption, forecasting a drop of
3.3 percent in 2009 instead of a previous forecast of 4.2 percent
growth. [ID:nBKK372091]
The world’s top three rubber producers — Thailand, Indonesia
and Malaysia — agreed last week to cut exports by 915,000 tonnes
in 2009 to prop up prices.
Thailand, the world biggest rubber exporter, accounting for
around 33 percent of global rubber trade, sold 2.9 million tonnes
in 2007, slightly down from 3.0 million tonnes in 2006, according
to the Commerce Ministry.
Physical rubber prices were expected to rebound slightly in
2009 and were likely trade in the range of $1.35-$2.00 per kg,
Luckchai said, due to Indonesia’s decision not to sell rubber at
low prices and the promise by Thailand’s new government to
intervene in the domestic rubber market.
“These are the most realistic prices we expecte to see in
2009. It’s impossible for rubber prices to jump above $3.0 per kg
again,” he said.
The export-grade rubber sheet (RSS3) was quoted at $1.30 per
kg on Friday.
The Indonesia Rubber Association has asked its members and
other producing countries not to sell rubber below $1.35 per kg
in a bid to mop up supplies and shore up prices. [ID:nJAK247486]
New Thai Prime Minister Abhisit Vejjajiva said on Thursday
his government would intervene to prop up prices. [ID:nBKK390644]

Source:  Reuters

Tocom rubber futures settle higher on short covering ahead of weekend, while weaker yen vs dollar also lends support, trader says. Adds market”s breakthrough of recent Y120/kg psychological resistance also helps bolster sentiment, though upside may be capped around Y130-Y135 by generally bearish outlook for crude oil prices, lingering wider demand concerns for rubber. Benchmark May RSS3 contract settles Y3.7 higher at Y124/kg. (ANJ)

Source:  Dow Jones Newswire

BANGKOK, Dec 18 (Reuters) – Tokyo rubber futures slipped on
Thursday as the stronger yen weighed on prices, but an agreement
by top rubber producers to cut exports and a plan by Thailand’s
new government to shore up producer prices lent support.
* The benchmark rubber contract on the Tokyo Commodity
Exchange <0#JRU:> for May delivery fell 1.8 yen per kg, or 1.5
percent, to settle at 120.3 yen ($1.37) per kg.
* The benchmark fell as low as 114.8 yen per kg before
stop-loss selling set in.
* “The market was oversold and should have a technical
rebound after the producing countries sent signals that prices
were too low,” a Japanese dealer said.
* The dollar stood little changed at 87.80 yen , after
dropping as low as 87.13 yen, the lowest since mid-1995. There
was caution in the market that the Japanese authorities might
intervene to rein in the yen’s strength.
* A stronger yen deflates the value of Tokyo-listed futures,
encouraging investors to sell to adjust their positions.
* The rubber market also came under pressure from a drop in
oil prices, which underlined views on weak global demand.
* Rubber’s fate has been closely tied to that of the auto
industry as the commodity’s main use is the production of tyres.
* U.S. President George W. Bush said on Wednesday a decision
on bailing out the teetering U.S. auto industry needed to be made
“relatively soon” and that he was looking at all options.
[ID:nN1735094]
* Tyre production in Japan is expected to fall 5 percent next
year in terms of rubber usage, the Japan Automobile Tyre
Manufacturers Association (JATMA) said on Wednesday.
[ID:nT191452]
* U.S. crude futures steadied around $40 a barrel on
Thursday, near its lowest in more than four years, as further
evidence of slowing demand trumped OPEC’s biggest-ever production
cut.
* The rubber market was expected to get some support from
news the Thai government planned to intervene on domestic prices
to support farmers, dealers said.
* TOCOM prices were also aided by an agreement of the world’s
top three rubber producers — Thailand, Indonesia and Malaysia –
to cut exports by 915,000 tonnes in 2009, dealers said.

PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH WEDNESDAY
Grade Price Change
Thai RSS3 (Jan) $1.20/kg unchanged
Thai RSS3 (Feb) $1.20/kg unchanged
Thai STR20 (Jan) $1.15/kg unchanged
Thai STR20 (Feb) $1.15/kg unchanged
Malaysia SMR20 (Jan) $1.15/kg unchanged
Malaysia SMR20 (Feb) $1.15/kg unchanged
Indonesia SIR20 (Jan) $0.52/lb unchanged
Indonesia SIR20 (Feb) $0.52/lb unchanged
Thai USS3 35 baht/kg +1 baht
Thai 60-percent latex (drums, Jan) $950/tonne unchanged
Thai 60-percent latex (bulk, Jan) $850/tonne unchanged
($1=34.43 baht)
($1=87.80 Yen)

Source:  Reuters

Tocom rubber futures settle higher, with benchmark contract ending the day at intraday high as firmer crude oil prices spur short covering, says trader in Tokyo. Adds breakthrough of key Y120/kg psychological resistance also helps bolster sentiment; further gains now likely, with test of Y130-Y135 possible in coming sessions, though potential for further volatility also remains as market still dominated by outside factors. Benchmark May RSS3 contract settles Y6.1 higher at Y122.1/kg. (ANJ)

Source:  Dow Jones Newswires

BANGKOK, Dec 16 (Reuters) – Tokyo rubber futures ended
slightly higher on Tuesday in line with recovering oil prices,
but demand worries fuelled by trouble in the car industry capped
the gains.
* The key Tokyo Commodity Exchange rubber contract for May
delivery <0#JRU:> rose 1.7 yen, or 1.5 percent, to settle at
116.0 yen ($1.29) per kg.
* Oil prices steadied, staying near $45 a barrel, bolstered
by expectations that OPEC will agree its largest supply cut ever,
after dropping 4 percent in the previous day.
* Rubber’s fate is closely tied to that of the auto industry
as the commodity’s main use is the production of tyres.
* Toyota Motor Corp <7203.T> is expected to slash its sales
projections for 2009 at a year-end news conference next week,
while providing details on how it plans to cut costs at a time of
dwindling sales and cash flow. [ID:nT171167]
* Ailing U.S. automakers will have to wait days to see how
their rescue shapes up. President George W. Bush told reporters
on Monday that while some funds earmarked to shore up the U.S.
financial industry could be diverted to automakers, no
announcement was imminent. [ID:nN14461208]
* A Reuters poll on Tuesday suggested TOCOM prices could rise
slightly to 120 yen by the end of January, supported by planned
cuts in exports by the leading rubber-producing countries, but in
general the market remains bearish. [nBKK343956]
* On the physical front, rubber prices edged higher as
limited supply and the news on export cuts by the top producers
lent support, traders said.

PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH MONDAY
Grade Price Change
Thai RSS3 (Jan) $1.15/kg +$0.05
Thai RSS3 (Feb) $1.15/kg +$0.05
Thai STR20 (Jan) $1.12/kg +$0.02
Thai STR20 (Feb) $1.12/kg +$0.02
Malaysia SMR20 (Jan) $1.12/kg +$0.02
Malaysia SMR20 (Feb) $1.12/kg +$0.02
Indonesia SIR20 (Jan) $0.50/lb +$0.01
Indonesia SIR20 (Feb) $0.50/lb +$0.01
Thai USS3 32 baht/kg +2 baht
Thai 60-percent latex (drums, Jan) $920/tonne +$20
Thai 60-percent latex (bulk, Jan) $820/tonne +$20
($1=34.83 baht)
($1=90.69 Yen)

Source:  Reuters