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TOKYO, March 19 (Reuters) – Key Tokyo rubber futures rose on
Thursday to close above 140 yen after firm oil prices helped wipe
out earlier losses that came in the wake of the Federal Reserve’s
surprise move to buy long-dated U.S. government debt.
* Tokyo rubber futures initially came under pressure from the
yen’s rise against the dollar after the Fed said on Wednesday it
would buy up to $300 billion worth of longer term U.S. government
debt over the next six months. [ID:nLJ337842]
* Oil’s rally to above $49 a barrel after the Fed’s move,
which hurt the dollar, helped erase earlier losses. [O/R]
* “The rubber market is down on the yen,” said a trader at a
Japanese trading company.
* “But its current tendency showing a positive correlation
with oil prices means the market has upside potential. Also,
technically yesterday’s rally clearing the recent range is a
positive sign in the midterm.”
* The key Tokyo Commodity Exchange rubber contract for August
delivery <0#JRU:> closed up at 141.8 yen, a rise of 0.8 yen or
0.6 percent, rallying from the intra-day low of 139 yen.
* The contract rose as high as 143.3 yen on Wednesday, the
highest since Feb. 27.
* The Tokyo market is closed on Friday for a national holiday
and trading resumes on Monday.
* India’s revised rubber production in the current fiscal
year is seen falling marginally to 859,000 tonnes from an earlier
estimate of 861,000 tonnes due to dry weather and lower yields, a
top official said. [ID:nBMB004874]
* The dollar limped higher on Thursday after suffering its
biggest daily plunge since 1985 as the Fed stunned investors by
saying it would buy long-term Treasuries in an effective printing
of money. [USD/]
* In the physical market, prices were little changed on
Thursday, with traders making few transactions because of a mixed
outlook for prices.
PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH WEDNESDAY
Grade Price Change
Thai RSS3 (Apr) $1.42/kg -$0.03
Thai RSS3 (May) $1.42/kg -$0.03
Thai STR20 (Apr) $1.40/kg unchanged
Thai STR20 (May) $1.40/kg unchanged
Malaysia SMR20 (Apr) $1.40/kg unchanged
Malaysia SMR20 (May) $1.40/kg unchanged
Indonesia SIR20 (Apr) $0.57/lb unchanged
Indonesia SIR20 (May) $0.57/lb unchanged
Thai USS3 46 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