Tocom rubber futures settle higher; news that International Rubber Consortium members will further cut exports by 700,000 tons in 2009 following October announcement of 215,000-ton cut bolsters sentiment, though longer-term outlook remains uncertain due to gloomy physical demand outlook, trader says. Adds further upside possible in coming days, though market likely to find technical resistance at Y135/kg as participants continue to focus on global auto industry woes, wider economic turmoil. Benchmark May RSS3 contract settles Y8.5 higher at Y114.3/kg. (ANJ)

Source:  Dow Jones Newswires

Tocom rubber futures settle lower though rebounds off Y100/kg, indicates market may have found a floor at that level, says trader in Tokyo. “We”ve had a few tests of the Y100/kg mark in recent weeks and it appears to be holding. It”s too early to says that”s a floor as there is a lot of uncertainty around, but it didn”t break this afternoon, despite all the bearish news, which is a good sign.” Automakers bailout collapse, weak crude oil prices, strong yen vs dollar factors for today”s fall, trader says. Benchmark May RSS3 contract settles Y4.2 lower at Y105.8/kg. (ANJ)

Source:  Dow Jones Newswires

Tocom rubber futures settle down in thin volume, with market still lacking firm direction, says trader. Adds focus remains on meeting of IRCo members in Java though impact of any market intervention measures decided by the producers group likely to be minimal; market now heavily oversold, slight rebound possible in near term but overall weak demand outlook likely to cap any significant gains, with trading expected in Y100-Y120 range in coming days. Benchmark May RSS3 contract settles Y2 lower at Y110/kg. (ANJ)

Source:  Dow Jones Newswires

SINGAPORE, Dec 10 (Reuters) – Tokyo rubber futures jumped as
much as 9.3 percent on Wednesday, bouncing back from a record
daily fall the previous day to track firmer oil and as a
tentative deal to rescue the U.S. auto industry buoyed the
equities markets.
* The White House and congressional Democrats reached
agreement in principle on a $15 billion proposal for bailing out
U.S. automakers, but while the accord covered key points, final
issues needed to be resolved. [ID:nL9471247]
* “The price is now more than half what it was six months
ago, so people don’t wish to sell from this point. I guess
there’s some short covering in the market,” said a dealer in
Tokyo.
* The benchmark rubber contract on the Tokyo Commodity
Exchange <0#JRU:> for May 2009 delivery settled at 112.0 yen per
kg ($1.21), up 7.0 yen, having fallen as low as 104.7 yen on
Tuesday — not far from last week’s 6-year low of 99.8 yen.
* “The market is oversold. That’s why we see this short
covering, but sentiment is so bearish because of the global
recession,” said another dealer in Tokyo, adding that the May
contract could find support around the psychological level of 100
yen.
* The benchmark contract posted its biggest daily fall ever
on Dec. 9 on jitters about the fate of the U.S. auto industry.
* Japan’s Nikkei average rose 3.2 percent to hit a one-month
closing high on Wednesday.

Source:  Reuters

BANGKOK, Dec 9 (Reuters) – Tokyo rubber futures tumbled 10.8
percent on Tuesday as investors remained jittery about demand
from the U.S. auto industry, which is seeking billions of dollars
of government aid to help it survive.
* The rubber contract on the Tokyo Commodity Exchange for May
delivery <0#JRU:> fell 12.7 yen, or 10.8 percent, to settle at
105.0 yen ($1.14) per kg.
* Dealers feel TOCOM could drop below the key psychological
level of 100 yen again if oil prices continue to fall, after
easing to 99.8 yen per kg on Dec. 5, the lowest for a main
contract since August 2002.
* Oil was also a negative factor as the price fell back below
$44 a barrel on Tuesday after a 7 percent jump on Monday, with
the market watching for the U.S. Energy Department’s short-term
outlook, which could point to more oil demand weakness next year.
* The White House reviewed a Democrat plan on Monday to bail
out stricken car makers with up to $15 billion in loans, a move
that would also clear the way for longer-term help if the
industry met certain conditions. [ID:nN07466561]
* Traders are waiting for a Dec. 11 meeting of the
International Rubber Consortium, which groups top producers
Thailand, Indonesia and Malaysia, but few expect the gathering in
Indonesia to produce results that will help support prices.
* In the physical market, rubber prices fell further in thin
trade, weighed down by demand worries and falling TOCOM prices,
traders said.

PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH MONDAY
Grade Price Change
Thai RSS3 (Jan) $1.13/kg -$0.02
Thai RSS3 (Feb) $1.13/kg -$0.02
Thai STR20 (Jan) $1.10/kg -$0.02
Thai STR20 (Feb) $1.10/kg -$0.02
Malaysia SMR20 (Jan) $1.10/kg -$0.02
Malaysia SMR20 (Feb) $1.10/kg -$0.02
Indonesia SIR20 (Jan) $0.50/lb unchanged
Indonesia SIR20 (Feb) $0.50/lb unchanged
Thai USS3 30 baht/kg -5 baht
Thai 60-percent latex (drums, Jan) $900/tonne -$100
Thai 60-percent latex (bulk, Jan) $800/tonne -$100
($1=35.44 baht)
($1=92.49 YEN)

Source:  Reuters