[Dow Jones] Asian cash rubber prices mostly higher, supported by firmer futures, thin supply due to ongoing wintering season in Thailand, Malaysia, says trader in Singapore. Adds China-based consumers continue buying, though only lots of 500-1,000 tons. Outlook for prices generally firm though tapping work likely to increase from mid-April; extra output likely to exert downward pressure on prices from then. For a daily breakdown of cash prices for all rubber grades, keyword search ASIAN PHYSICAL RUBBER PRICES to see the item. (ANJ)

Source: Dow Jones

TOKYO, March 30 (Reuters) – Tokyo rubber futures fell 2 percent on Monday, extending Friday’s retreat from a four-month high near 160 yen, as oil prices dropped on a bleak outlook for energy demand.
* Key rubber futures fell as low as 149.9 yen per kg or down 2.8 percent, in a correction from the recent rally, with external factors providing little help, traders said.
* The Tokyo Commodity Exchange rubber contract for September delivery <0#JRU:> ended at 150.7 yen per kg, down 3.5 yen or 2.3 percent.
* The contract rose as high as 159 yen on Friday, the highest level for any benchmark since Nov. 19, as chart-led buying gained momentum after it broke above the 150 yen barrier.
* “The market may have hit a ceiling when it reached 159 yen, now that there are more chances of oil falling below $50 and the dollar has failed to rise to 100 yen,” said a manager at a Japanese commodity brokerage.
“It’s likely that the market will come back to this year’s core range in the 140 yen zone.”
* Rubber futures eased on news that the Obama administration autos task force on Monday rejected the turnaround plans of General Motors Corp and Chrysler LLC and warned both could be put through bankruptcy to slash debts. [ID:nLU152601] [ID:nN29520526]
* “What’s important for the rubber market is how these automakers will be handled — whether they will be merged by other automakers so production will continue, or let to continue operations on their own for now,” said a dealer at a Japanese trading firm.
* “Until the next stage becomes clear, rubber prices will likely move sideways, with traders adjusting their positions, selling contracts with premiums to book profits and using them to cover other losses,” the dealer said.
* U.S. auto sales likely slogged at the weakest monthly rates in more than 27 years in March and show few signs of life, adding to the pressure on GM, Chrysler and Ford Motor Co . The auto sales data is due on April 1. [ID:nN27267260]
* U.S. crude oil futures extended the previous session’s losses, falling below $51 a barrel on Monday, as a bleak near-term energy demand outlook prompted investors to take profits on oil’s recent rally. [O/R]
* The dollar fell more than 1 percent against the yen after last week’s rally halted below 99 yen. A stronger yen erodes yen-based commodity futures prices. [USD/]
* In the physical rubber market, prices were mostly unchanged, but were underpinned by tight supplies and buying from Chinese users mainly in the most competitive Indonesian origin.

PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH FRIDAY
Grade Price Change
Thai RSS3 (Apr) $1.55/kg unchanged
Thai RSS3 (May) $1.55/kg unchanged
Thai STR20 (Apr) $1.53/kg -$0.02
Thai STR20 (May) $1.53/kg -$0.02
Malaysia SMR20 (Apr) $1.53/kg unchanged
Malaysia SMR20 (May) $1.53/kg unchanged
Indonesia SIR20 (Apr) $0.62/lb unchanged
Indonesia SIR20 (May) $0.62/lb unchanged
Thai USS3 48 baht/kg unchanged
Thai 60-percent latex (drums, Apr) $1,300/tonne unchanged
Thai 60-percent latex (bulk, Apr) $1,200/tonne unchanged

Source: Reuters

Tocom rubber futures settle lower as traders book profits on recent gains ahead of weekend. Sentiment has improved, however, following Tocom”s break out of recent Y140-Y150 range, with breach of several key technical resistance levels along the way also helping to bolster sentiment, says trader. Adds further upside now likely next week, with test of Y160/kg psychological level probable, though market will continue to also be heavily influenced by outside factors, notably currency fluctuations, crude oil and other commodities, amid lack of clear direction from rubber-specific fundamentals. Benchmark Sep RSS3 contract settles Y1.8 lower at Y154.2/kg after touching intraday high of Y159/kg in morning session, highest level since mid-November. (ANJ)

Source: Dow Jones

TOKYO, March 26 (Reuters) – Tokyo rubber futures rose on Thursday, reversing the previous day’s retreat with investors focused on technical charts’ improvement since the benchmark contract earlier this week broke above key resistance of 147 yen per kg.
* Fundamentals have hardly changed recently, with new auto sales dwindling and rubber supplies by the main producers in South East Asia staying tight, but there are signs of fresh money entering the rubber market, traders said.
* The most actively traded futures contract on the Tokyo Commodity Exchange <0#JRU:> for September delivery ended at 156.0 yen per kg. The contract was newly listed on Thursday at 149.00 yen.
* The previous benchmark August contract ended up 7.6 yen, or 5.2 percent, at 154.7 yen. Other contracts were between 6.3 yen and 7.2 yen higher.
* “Especially after breaking above the 150 yen mark, the market saw fresh buying setting in, bolstering sentiment,” said a dealer at a Japanese commodities brokerage.
“It’s basically a reversal of the oversold market (late last year) as people have started to realise that even though global auto sales fell steeply, the number of new sales was not zero… A recovery recently in oil and other commodities prices is also a big help.”
* The TOCOM rubber market hit a six-year trough below 100 yen in December, having lost almost three-fourths of the value six months earlier.
* U.S. oil futures rose on Thursday after falling more than $1 a barrel in the previous session, as investors focused on hopes of an early return to economic growth. [O/R]
* The dollar rose above 98 yen on Thursday, moving away from a trough below 94 yen last week. It came off the previous day’s lows hit after U.S. Treasury Secretary Timothy Geithner said he was open to expanding the use of the International Monetary Fund’s special drawing rights. [USD/]
* In the physical market, prices were flat to higher on Thursday as Thai producers were passing on higher raw material costs in their sales prices, while Chinese buyers favoured the most competitive Indonesian grade.

PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH WEDNESDAY
Grade Price Change
Thai RSS3 (Apr) $1.50/kg unchanged
Thai RSS3 (May) $1.50/kg unchanged
Thai STR20 (Apr) $1.50/kg +$0.05
Thai STR20 (May) $1.50/kg +$0.05
Malaysia SMR20 (Apr) $1.45/kg unchanged
Malaysia SMR20 (May) $1.45/kg unchanged
Indonesia SIR20 (Apr) $0.60/lb unchanged
Indonesia SIR20 (May) $0.60/lb unchanged
Thai USS3 48 baht/kg +1 baht
Thai 60-percent latex (drums, Apr) $1,300/tonne unchanged
Thai 60-percent latex (bulk, Apr) $1,200/tonne unchanged

Source: Reuters

Tocom rubber futures settle lower in thin volume, weighed down by slight weakness in other commodities, notably crude oil prices, says trader. Adds market”s failure to hold above psychologically important Y150/kg level in recent sessions indicates market may find psychological resistance at that mark, pending fresh supportive news. Benchmark August RSS3 contract settles Y2.6 lower at Y147.1/kg. New September benchmark begins Thursday. (ANJ)

Source: Dow Jones