TOKYO, Dec 2 (Reuters) – Tokyo rubber futures fell to a five-year low on Tuesday as a sell-off in equities and oil fanned investor worries about weakening global demand, although the key contract closed off the intraday low.
* The key Tokyo Commodity Exchange rubber contract for May delivery <0#JRU:> fell 10.7 yen, or 8.6 percent, to an intraday low of 113.5 yen per kg, the lowest for any benchmark since July 2003. It closed at 116.6 yen.
* The rebound suggested that selling was petering out for now, said Hitoshi Inagawa, a senior manager at Yutaka Shoji Co in Tokyo.
“Now that the spread between gold and platinum is zero, as is the spread between gasoline and crude oil, a correction is setting in…That’s giving a cue for people to buy rubber back,” Inagawa said.
Rubber, platinum and gasoline futures have been hit harder than other commodities on TOCOM in the past few months as investors worried that a global recession could further trim automobile sales, he added.
* Rubber prices often move in line with stocks and oil prices when investors have strong concerns about the global economy.
* Japan’s benchmark Nikkei share average <.N225> sank 6.4 percent, hitting a nearly two-week closing low, as exporters such as Honda Motor Co <7267.T> tumbled on the yen’s strength against the dollar as fears deepened about the global economy. [.T]
* Oil slid to a 3-½ year low under $48 extending the previous day’s sharp drop as more signs of the poor health of the global economy emerged and after OPEC opted to delay talks on further outut cuts. [O/R]
* The dollar’s early dip to a five-week low versus the yen had prompted selling on TOCOM as it deflates yen-based commodities prices, but the dollar then rose to 93.60 yen , getting a boost from buying by Japanese investors. [FRX/]
* The world’s top rubber-producing countries will meet next week in Indonesia to look for ways to support prices, rescheduling a Bangkok meeting that had to be cancelled after anti-government protests closed Thai airports. [ID:nBKK372175]
* Japan’s crude rubber inventories rose 38 percent in the 10 days to Nov 20, Rubber Trade Association of Japan data showed on Tuesday. [ID:nT171582]
* Trading in the physical rubber market has been slow due partly to rising political risk in Thailand, the world’s top rubber producer. [ID:nSP131986]
* Moreover, concerns about a global recession kept buyers at bay, suggesting prices have more room to fall, traders said.
* “We had expected consumers would come to the market at $1.50, but in vain. It was slightly above $1.30 yesterday. But there were no buyers at all,” said a trader in Thailand, referring to the price of Thai RSS3 tyre grade.
“The worst is not over yet,” he said.

PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH MONDAY
Grade Price Change
Thai RSS3 (Jan) $1.30/kg -$0.10
Thai RSS3 (Feb) $1.30/kg -$0.10
Thai STR20 (Jan) $1.30/kg -$0.10
Thai STR20 (Feb) $1.30/kg -$0.10
Malaysia SMR20 (Jan) $1.30/kg -$0.10
Malaysia SMR20 (Feb) $1.30/kg -$0.10
Indonesia SIR20 (Jan) $0.59/lb -$0.03
Indonesia SIR20 (Feb) $0.59/lb -$0.03
Thai USS3 40 baht/kg -4 baht
Thai 60-percent latex (drums, Jan) $1,120/tonne +$20
Thai 60-percent latex (bulk, Jan) $1,000/tonne +$50

Source:  Reuters

TOKYO, Dec 1 (Reuters) – Tokyo rubber futures closed down 9.7 percent on Monday as tumbling crude oil prices fanned investor worries about global demand, with the benchmark rubber contract dipping to a near four-year low.
* The key Tokyo Commodity Exchange rubber contract for May delivery <0#JRU:> closed at 124.2 yen per kg, down 13.4 yen or about 9.7 percent, after earlier hitting an intraday low of 122.1 yen, the lowest since January 2005.
* “The market has not yet factored in a fall in demand due to the global recession,” said Takashi Ogura, a director at Kanetsu Asset Management Co.
“Prices are low, having fallen more than 50 percent from a peak. But technical charts suggest room for further falls,” he said, adding that the short-term market range fell to 100-150 yen late last month from 150-200 yen previously.
* U.S. crude futures fell below $53 per barrel on Monday after producer cartel OPEC decided over the weekend to delay consideration of a third supply cut to its next meeting later in December as economic woes reduce oil demand. [O/R]
* Amid concerns about the global economy, rubber prices often move in line with oil prices.
* Trading in the physical rubber market has been slow due to continued political confusion in Thailand, the world’s top rubber producer.
* In Thailand, anti-government protestors ignored a police order to end a blockade of Bangkok’s main airport, which entered its seventh day on Monday. [ID:nSP258694]
* Rubber inventories in warehouses monitored by the Shanghai Futures Exchange fell 3 percent to 65,995 tonnes in the week ended on Thursday, the exchange said on Friday. It was the lowest level since the week ended on Nov. 6.

PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH FRIDAY
Grade Price Change
Thai RSS3 (Jan) $1.40/kg -$0.05
Thai RSS3 (Feb) $1.40/kg -$0.05
Thai STR20 (Jan) $1.40/kg -$0.05
Thai STR20 (Feb) $1.40/kg -$0.05
Malaysia SMR20 (Jan) $1.40/kg -$0.05
Malaysia SMR20 (Feb) $1.40/kg -$0.05
Indonesia SIR20 (Jan) $0.62/lb -$0.01
Indonesia SIR20 (Feb) $0.62/lb -$0.01
Thai USS3 44 baht/kg unchanged
Thai 60-percent latex (drums, Jan) $1,100/tonne unchanged
Thai 60-percent latex (bulk, Jan) $950/tonne unchanged

Source:  Reuters