Tocom rubber futures settle lower, weighed down by weak demand outlook on back of fresh bearish data from auto sector, generally weak crude oil prices, while early breach of previous Y140/kg psychological support also encourages sellers; volume thin with 23,089 lots done; focus now turns to Monday”s return of world”s biggest rubber consumer, China, following week-long holiday; Tocom likely to find immediate support at Y137.5/kg then Y134.8/kg, say market participants. Benchmark July RSS3 contract settles Y4.1 lower at Y138.2/kg. (ANJ)

Source:  Dow Jones

TOKYO, Jan 29 (Reuters) – Key Tokyo rubber futures rose 2 percent on Thursday, supported by tightening supply as producer countries enter the wintering season.

* The key Tokyo Commodity Exchange rubber contract for July delivery <0#JRU:> rose 2.6 yen to end the morning at 148.3 yen per kg, up 1.8 percent. The key contract, which was launched on Tuesday, rose as high as 149.6 yen earlier on a weaker yen and steady oil prices. Rubber prices trimmed some gains as the yen recovered against the dollar.

* The dollar was little changed at 90.15 yen after inching up 0.4 percent <JPY=> earlier. The dollar hit a one-week high of 90.79 on Wednesday after the Federal Reserve kept interest rates steady. [FRX/]

* In addition to the wintering season, the market’s downside is limited as the world’s top three rubber producing countries — Thailand, Indonesia and Malaysia — have started to cut first-quarter exports in a bid to prop up prices.

* At the same time, slack demand from the auto industry due to the deepening global recession will likely moderate price rises, traders said.

* The U.S. House of Representatives on Wednesday cleared an $825 billion economic stimulus package, and the Senate is expected to begin debate within days. [ID:nN28517878]

* Oil prices rose on Wednesday after U.S. government data showed draws in gasoline and distillate inventories and OPEC vowed to fully implement its steep supply cuts by the end of the month. U.S. crude CLc1 was 19 cents lower at $41.97 on Thursday after settling at $42.16 the previous day. [O/R]

* The physical market was little changed in subdued trading as China, the largest rubber consumer, marks the Lunar New Year holiday.

* “The market will be quiet until next week when Chinese players return in full force, and we can see how consumers react to current market levels,” said a trader in Thailand.

* “The market looks supportive, as consumers should be able to buy at current levels. At the same time, some may still be waiting for prices to fall before buying,” the trader said.

PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH WEDNESDAY

Grade Price Change

Thai RSS3 (Feb) $1.55/kg +$0.03

Thai RSS3 (Mar) $1.55/kg +$0.03

Thai STR20 (Feb) $1.45/kg -$0.01

Thai STR20 (Mar) $1.45/kg -$0.01

Malaysia SMR20 (Feb) $1.45/kg unchanged

Malaysia SMR20 (Mar) $1.45/kg unchanged

Indonesia SIR20 (Feb) $0.635/lb +$0.005

Indonesia SIR20 (Mar) $0.635/lb +$0.005

Thai USS3 47 baht/kg +1 baht

Thai 60-percent latex (drums, Feb) $1,150/tonne unchanged

Thai 60-percent latex (bulk, Feb) $1,050/tonne unchanged

Source:  Reuters

TOKYO, Jan 28 (Reuters) – Key Tokyo rubber futures fell 2.4
percent on Wednesday as traders pocketed profits from a rally the
previous day and factored in a halt in the dollar’s advance
against the yen.

 * The key Tokyo Commodity Exchange rubber contract for July
delivery <0#JRU:> fell to an intraday low of 143.4 yen per kg,
down 5.8 yen or 3.9 percent, before closing at 145.7 yen.

 * The contract, which was launched on Tuesday, closed up 7.6
percent on its debut to touch a one-week high for any TOCOM
benchmark as the dollar gained ground against the yen and propped
up yen-based futures prices.

 * The dollar firmed 0.3 percent from late U.S. trading on
Tuesday to 89.29 yen <JPY=>, but was off a week-high hit the
previous day of above 90 yen. [USD/]

 * The TOCOM market has mostly hovered below 150 yen since the
start of the year.

 * A Tokyo-based analyst said the TOCOM rubber market has hit
bottom, although it has yet to find the incentive to move higher.

 * He said news of export cuts by the world's top rubber
producers was helping to support prices, but the strength was
lacking for them to move higher.

 * "We need news about demand recovering for prices to climb,
but at the moment there is none," he said.

 * He added that investment funds were still shy about
returning in a major way to commodities, and that when they did
return gold would be the first to benefit.

 * U.S. crude CLc1 firmed 1 percent on Wednesday from a 9
percent fall the previous day as worries over demand due to the
faltering global economy eased. [O/R]

 * India's state-run Rubber Board on Wednesday revised down
the country's rubber consumption to 862,000 tonnes from 899,000
tonnes in fiscal 2008/09 as tyre makers are cutting consumption
in response to lower demand. [ID:nBMB004408]

 * In the auto industry, Britain pledged on Tuesday to
guarantee up to 2.3 billion pounds ($3.25 billion) of loans to
help its ailing car industry cope with a slump in demand that has
cost thousands of jobs. [IDnLR230021]

 * The physical market is expected to remain quiet for most of
the week as China, the largest rubber consumer, marks the Lunar
New Year holiday.

 * The world's top three rubber producing countries --
Thailand, Indonesia and Malaysia -- have started to cut
first-quarter exports in a bid to prop up prices, but slack
demand due to the global recession is likely to limit a price
recovery.

 PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH TUESDAY

 Grade                                Price        Change

 Thai RSS3 (Feb)                     $1.52/kg      unchanged

 Thai RSS3 (Mar)                     $1.52/kg      unchanged

 Thai STR20 (Feb)                    $1.46/kg      unchanged

 Thai STR20 (Mar)                    $1.46/kg      unchanged

 Malaysia SMR20 (Feb)                $1.45/kg      N/A

 Malaysia SMR20 (Mar)                $1.45/kg      N/A

 Indonesia SIR20 (Feb)               $0.63/lb      -$0.04

 Indonesia SIR20 (Mar)               $0.63/lb      -$0.04

 Thai USS3                           46 baht/kg    unchanged

 Thai 60-percent latex (drums, Feb)  $1,150/tonne  unchanged

 Thai 60-percent latex (bulk, Feb)   $1,050/tonne  unchanged

Source:  Reuters

TOKYO, Jan 27 (Reuters) – Tokyo rubber futures were mostly
firmer on Tuesday as weakening yen boosted market sentiment after
the market rallied almost 3 percent the previous day.
* The dollar rose 0.5 percent to 89.57 yen on news of
a government plan to buy shares of companies whose capital has
been seriously hurt by the financial crisis. [USD/] [ID:nT89837]
A weaker yen inflates yen-based rubber prices.
* Moves by main rubber producers to slash exports and recent
purchases by China, the world’s biggest rubber consumer, continue
to lure investors to the Tokyo Commodity Exchange market.
* TOCOM rubber contracts were higher, with rises ranging from
0.3 yen to 1.9 yen per kg, except for the newly listed one for
July delivery <0#JRU:>, which inched lower to 139.9 yen after
opening at 140.0 yen.
* The TOCOM market has been on the rise after hitting a
four-week low on Friday. The then benchmark June contract stood
at 138.9 yen by the midday close on Tuesday, off Friday’s low of
134.8 yen.
*The world’s top three rubber producing countries are
starting to cut exports of 270,000 tonnes in the first quarter –
around 5 percent of annual shipments — as agreed in December to
shore up prices. [ID:nBKK192808]
* The physical market remained quiet on Tuesday, with China
observing the Lunar New Year holidays throughout this week. Many
dealers in Southeast Asian producing countries refrained from
trading as the Singapore and Malaysian markets stay closed for a
second day due to the Lunar New Year.
* But with the global economy in recession, and the auto
industry cutting output, slack demand for tyres will limit price
gains, traders said.
* Shares in Continental fell 17 percent on Monday
as expectations that the German auto parts supplier would seek
state aid added to investor unease after news it was losing its
financial chief and capping dividends. [ID:nLQ268888]
* The auto sector consumes 60 percent of world natural rubber
output of around 9 million tonnes.

PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH MONDAY
Grade Price Change
Thai RSS3 (Feb) $1.52/kg N/A
Thai RSS3 (Mar) $1.52/kg N/A
Thai STR20 (Feb) $1.46/kg N/A
Thai STR20 (Mar) $1.46/kg N/A
Malaysia SMR20 (Feb) N/A N/A
Malaysia SMR20 (Mar) N/A N/A
Indonesia SIR20 (Feb) $0.67/lb N/A
Indonesia SIR20 (Mar) $0.67/lb N/A
Thai USS3 46 baht/kg N/A
Thai 60-percent latex (drums, Feb) $1,150/tonne N/A
Thai 60-percent latex (bulk, Feb) $1,050/tonne N/A

Source:  Reuters

RSS3 futures on Agricultural Futures Exchange of Thailand settle higher, in line with gains on bellwether Tocom, though volume very thin with just 775 lots exchanged. Strong gains on Tocom, steadier crude oil prices are main supportive factors, though recent reports that major producing countries aim to cut exports to try and shore up prices also helping to bolster sentiment, says trader. Adds focus to stay on crude oil, Tocom in coming sessions with thin trade likely for rest of this week with absence of world”s biggest consumer, China, for Lunar New Year holiday likely to damp trade elsewhere. Benchmark August RSS3 contract up THB2.50 at THB55.05/kg. (ANJ)

Source:  Dow Jones