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

Comments are closed.