This entry was posted on Thursday, January 29th, 2009 at 7:16 pm and is filed under Rubber News. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.
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