Tocom rubber futures settle mostly higher in thin volume, with holidays across region damping interest. Recent reports major producing countries will cut exports in 2009 to shore up prices, gains in other Tocom commodities – notably metals – spur short covering, though Tocom rubber likely to find strong psychological resistance at Y140/kg, barring fresh bullish news, says trader. Benchmark June RSS3 contract settles Y3.8 higher at Y138.6/kg. New July benchmark begins Tuesday. (ANJ)

Source:  Reuters

Tocom rubber futures settle lower in lackluster trade, with firmness in yen vs dollar, weak crude oil prices, bearish fundamentals dragging on sentiment, says trader. Adds further declines likely in coming sessions following breach of previous Y137/kg technical support today, with test of next support at Y127/kg likely next week. Benchmark June RSS3 contract settles Y6.5 lower at Y134.8/kg; lowest since December 30. (ANJ)

Source:  Dow Jones

TOKYO, Jan 22 (Reuters) – Key Tokyo rubber futures inched
lower on Thursday, dampened by a firm yen, but physical demand
from China helped lend some support.
* The benchmark Tokyo Commodity Exchange rubber contract for
June delivery <0#JRU:> wiped out earlier gains to end down 0.7
yen, or 0.5 percent, at 141.3 yen per kg. Rubber futures were
supported earlier by a rebound in stocks and oil prices, rising
as high as 145.3 yen. They fell as low as 137.2 yen.
* Nearby months, which were lower earlier in the day, mostly
firmed later. Analysts said the nearby months were supported as
traders kept long positions open, aiming to take physical
delivery at the January contract’s expiry on Jan. 26.
* The yen held near a 13-½ year high of 87.10 yen hit on
Wednesday, trading up 0.4 percent against the U.S. dollar at
89.15 yen , as investors remained extremely risk averse.
* Tokyo shares <.N225> rose nearly 2 percent. [.T]
* U.S. crude futures rose 80 cents at $44.37 per
barrel, extending a near 7 percent rise on Wednesday. [O/R]
* The market’s downside was limited by news earlier in the
week that rubber producing countries are ready to step up efforts
to support prices. The approach of the wintering dry season in
the Asian producing countries was another supportive factor.
* The Thai government said it would buy rubber for its
stockpiles and increase planned corn and crude palm oil purchases
to shore up prices as part of a package to support farmers and
help stimulate the economy.
* Ministers from the top three rubber producers — Thailand,
Indonesia and Malayasia — are to meet in Malaysia in February,
and a Malaysian minister said the three countries were prepared
to cut exports by up to 20 percent this year.
* Asian physical rubber prices were broadly lower, reflecting
bearish TOCOM sentiment.
* “The market is also waiting for government intervention
steps, which they said they would take but haven’t taken any
action on,” a trader in Thailand said. “The market wants to see
at what level the government will buy.”
* At the same time, traders said physical demand from China
was present ahead of the Lunar New Year, which begins on Jan. 26.
* Indonesian dealers said China has been buying SIR20 grades
from dealers in Singapore but there were no details on the
amount. A Sumatran-based dealer said March SIR20 was sold to
unspeficied buyers at 61.00 U.S. cents/pound late on Wednesday.
* “They have been in the market for some time but I wouldn’t
say they are buying in large quantities. These days, you just
have to be careful. China is buying hand to mounth,” said a
Jakarta-based dealer.
PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH WEDNESDAY
Grade Price Change
Thai RSS3 (Feb) $1.52/kg -$0.05
Thai RSS3 (Mar) $1.52/kg -$0.05
Thai STR20 (Feb) $1.45/kg -$0.05
Thai STR20 (Mar) $1.45/kg -$0.05
Malaysia SMR20 (Feb) $1.45/kg -$0.05
Malaysia SMR20 (Mar) $1.45/kg -$0.05
Indonesia SIR20 (Feb) $0.65/lb -$0.02
Indonesia SIR20 (Mar) $0.65/lb -$0.02
Thai USS3 46 baht/kg -3 baht
Thai 60-percent latex (drums, Feb) $1,200/tonne -$50
Thai 60-percent latex (bulk, Feb) $1,080/tonne -$70

Source:  Reuters

TOKYO, Jan 21 (Reuters) – Key Tokyo rubber futures fell on
Wednesday, extending losses into a second session as a drop in
oil prices weighed on market sentiment while investors took
profits from recent gains.
* The benchmark Tokyo Commodity Exchange rubber contract for
June 2009 delivery <0#JRU:> ended down 8 yen at 142.0 yen per
kg, down 5.3 percent from the previous close.
* Nearby months, which were firmer earlier in the day, also
eased later. Analysts said the nearby months were supported as
traders kept long positions open, aiming to take physical
delivery at the January contract’s expiry on Jan. 26.
* “Speculators who want to take advantage of the strong yen
cannot become fully bearish because nearby months remain firm
ahead of the January contract’s expiry,” said a manager at a
Tokyo-based commodity brokerage.
* The selling across the board was also prompted by
investors taking profits after the market had risen above the
psychological 150 yen mark earlier in the week, partly on
expectations the new U.S. administration would bring effective
measures to prop up the U.S. economy, a Tokyo-based asset
manager said.
* Barack Obama laid out few new details on how his
administration will tackle the banking crisis and flagging
economy in his inauguration speech on Tuesday.
* “Now that the event is over, investors took profits as the
market has kept a firm tone recently,” he said, adding that once
such selling subsided, the market was likely to test its upside.
* The TOCOM market saw a limited downside on caution over
more rubber export cuts ahead of a February meeting of top
producing countries. The approach of the wintering dry season in
Asian producing countries is another supportive factor.
* The top three rubber-producing countries are prepared to
cut exports by up to 20 percent this year, a Malaysian minister
said on Tuesday. Ministers from Thailand, Indonesia and
Malayasia are to meet in Malaysia in February. [ID:nKLR360139]
* The Thai government will buy rubber for its stockpiles and
increase planned corn and crude palm oil purchases to shore up
prices as part of a package to support farmers and help
stimulate the economy, Deputy Spokesman Puttipong Punnakan said
on Tuesday. [ID:nBKK357497]
* U.S. crude futures fell below $41 a barrel on
Wednesday, as further evidence emerged of a deepening global
slowdown that is crushing demand for fuel. [O/R]

PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH TUESDAY
Grade Price Change
Thai RSS3 (Feb) $1.57/kg +$0.02
Thai RSS3 (Mar) $1.57/kg +$0.02
Thai STR20 (Feb) $1.50/kg +$0.04
Thai STR20 (Mar) $1.50/kg +$0.04
Malaysia SMR20 (Feb) $1.50/kg +$0.04
Malaysia SMR20 (Mar) $1.50/kg +$0.04
Indonesia SIR20 (Feb) $0.67/lb +$0.01
Indonesia SIR20 (Mar) $0.67/lb +$0.01
Thai USS3 49 baht/kg +1 baht
Thai 60-percent latex (drums, Feb) $1,250/tonne +$30
Thai 60-percent latex (bulk, Feb) $1,150/tonne +$50

Source:  Reuters

PUTRAJAYA, Malaysia Jan 20 (Reuters) – The top three rubber-producing countries are prepared to cut exports by an additional 430,000 tonnes if prices fall further, a Malaysian minister said on Tuesday.
Such a move would take to 1.345 million tonnes the total rubber stocks to be removed from global markets in 2009.
Thailand, Indonesia and Malaysia, which form the International Rubber Consortium (IRCo), will look at revising the floor price of the commodity at a meeting in February in the Malaysian capital, Commodities Minister Peter Chin said.
“IRCo is aggressive in getting the fundamentals right, it is not necessary to tell the whole world what it has done behind the scenes,” Chin told Reuters in an interview in the Malaysian administrative capital.
“We (IRco) will monitor the price trend closely for the next three quarters; if there is a need to continue with the Agreed Export Tonnage Scheme, another 430,000 tonnes of exports will be reduced.”
IRCo members said last year they would cut exports by 915,000 tonnes for 2009, and would not sell rubber at below $1.35 per kilogram. They exported 5.5 million tonnes in 2007, while total production was 7 million tonnes.
The deal will see first-quarter exports cut by 270,000 tonnes, officials have earlier said.

Source:  Reuters