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TOKYO, Feb 27 (Reuters) – Most Tokyo rubber futures contracts fell on Friday but they stayed within recent ranges after early gains on strong overnight oil prices were wiped out by a firmer yen.
* Many are focusing on the fate of General Motors Corp , which recently reported a $30.9 billion net loss for 2008, as traders look for news that could push rubber prices out of their current range.
* Rubber on the Tokyo Commodity Exchange has mostly traded between 130-155 yen per kg this year, capped at the high end by worries about poor demand and supported at the low end by concerns that producers might step in to prop up prices.
* “Rubber prices are caught in a narrow band and it may be a while before it breaks out of that given the lack of fresh news,” a Tokyo-based broker said.
* The key Tokyo Commodity Exchange rubber contract for August delivery <0#JRU:> ended down 1.9 yen or 1.4 percent at 140.2 yen per kg.
* TOCOM rubber climbed above 150 yen earlier this year but failed to hold there as the deepening global recession stirred fears about falling demand for the industrial commodity.
* U.S. oil futures gained nearly $7 a barrel in the last three days although some of the gains were pared on Friday when the price extended losses to fall closer to $44. [O/R]
* The yen rose on Friday from a 3-½ month low against the dollar as Japanese output data matched economists’ expectations and led speculators to take profits on the dollar’s rise versus the Japanese currency in the last two weeks. [USD/]
* Japan’s Nikkei stock average gained 1.5 percent, partly helped by news of a likely agreement between the U.S. government and Citigroup . [ID:nSP313455] [.T]
* Physical rubber prices were mostly unchanged with Indonesian rubber attracting buyers due to its competitively low price.
PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH THURSDAY
Grade Price Change
Thai RSS3 (Mar) $1.45/kg unchanged
Thai RSS3 (Apr) $1.45/kg unchanged
Thai STR20 (Mar) $1.37/kg unchanged
Thai STR20 (Apr) $1.37/kg unchanged
Malaysia SMR20 (Mar) $1.37/kg unchanged
Malaysia SMR20 (Apr) $1.37/kg unchanged
Indonesia SIR20 (Mar) $0.56/lb unchanged
Indonesia SIR20 (Apr) $0.56/lb unchanged
Thai USS3 46 baht/kg unchanged
Thai 60-percent latex (drums, Mar) $1,350/tonne unchanged
Thai 60-percent latex (bulk, Mar) $1,200/tonne unchanged
Source: Reuters