TOKYO, April 17 (Reuters) – Tokyo rubber futures fell more than 2 percent to close a touch above 170 yen as waning technical support and soft oil prices combined to put pressure on the industrial commodity.
* The key Tokyo Commodity Exchange rubber contract for September delivery <0#JRU:> closed at the day’s low of 171.3 yen, down 4.5 yen, or 2.6 percent. The intra-day high was 177.4 yen.
* The benchmark is currently down 4.7 percent from a five-month high of 179.7 yen marked on Monday, when it was driven upwards by bullish technical factors.
* After failing to breach the key 180 yen level, the benchmark contract slipped to touch a one-week low of 170.1 yen on Wednesday.
* “Funds have stopped buying after the market failed to break above a key technical level, and unless oil prices rise sharply or the yen weakens significantly, it will be difficult for the market to test the 180 yen mark,” said a senior trader at a Japanese brokerage.
* The nearby contact looks set to be weighed down ahead of its expiry later in the month as the volume of dealers selling far exceeds speculator purchases, the senior trader said.
* He said dealers are selling RSS3 to buy SIR20 to take advantage of the price differences, prompting them to hedge by selling longer-dated futures contracts. Such moves have put a cap on the prices of these contracts, he said.
* On deals in the physical market, traders said Goodyear recently bought a July SIR20 cargo at 70.14 cents/lb, while Bridgestone purchased a cargo at 70.75 cents
* Physical market traders said major tyre makers were also offered June SIR20 at 70.50 cents but no deals were heard done.
* Oil inched down below $50 a barrel on Friday, paring Thursday’s 1.5 percent gain that came amid signs of an economic improvement in the United States. [O/R]
* The yen fell 0.2 percent against the dollar. A weaker yen inflates yen-based futures prices, helping to limit falls in rubber prices. [USD/]
* Japan’s Nikkei average gained 1.7 percent on Friday, although the benchmark marked its first negative week since early March. [.T]
* Physical rubber prices were mostly steady.

PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH THURSDAY
Grade Price Change
Thai RSS3 (May) $1.70/kg unchanged
Thai RSS3 (Jun) $1.70/kg unchanged
Thai STR20 (May) $1.66/kg +$0.01
Thai STR20 (Jun) $1.66/kg +$0.01
Malaysia SMR20 (May) $1.63/kg unchanged
Malaysia SMR20 (Jun) $1.63/kg unchanged
Indonesia SIR20 (May) $0.70/lb unchanged
Indonesia SIR20 (Jun) $0.70/lb unchanged
Thai USS3 53.5 baht/kg unchanged
Thai 60-percent latex (drums, May) $1,320/tonne unchanged
Thai 60-percent latex (bulk, May) $1,200/tonne unchanged

Source: Reuters

[Dow Jones] Asian cash rubber prices remain largely steady after long holiday, but trading quiet as relatively high prices deter buyers, say traders. Tapping already on, but “it will take at least another two weeks before we can see more fresh supplies on the market that can affect prices,” says trader in Thailand. For a daily breakdown of cash prices for all rubber grades, keyword search ASIAN PHYSICAL RUBBER PRICES to see the item. (HWS)

Source: Dow Jones

[Dow Jones] Tocom rubber futures settle mixed, after trading in narrow range without fresh lead. “No strong rally or steep losses were seen on external markets, such as crude oil, equities and yen, so rubber was struggling to find a direction. Besides, the news front remains quiet,” says analyst in Tokyo. Notes positive cues in China”s economic data have already been factored in, so didn”t give much boost to sentiment; rangebound trade expected tomorrow. Benchmark September RSS3 contract down Y1 to settle at Y175.8/kg.(HWS)

Source: Dow Jones

TOKYO, April 10 (Reuters) – Tokyo rubber futures hit a
five-month high on Friday but reversed gains to fall 1 percent as
a firmer yen hurt investor sentiment.
* Falls in platinum and gasoline futures in Tokyo also sapped
the momentum for rubber, which had been boosted in part by
bullish technical charts. The U.S. oil futures market was closed
for the Easter holiday.
* The key Tokyo Commodity Exchange rubber contract for
September delivery <0#JRU:> ended down 0.4 yen or 0.2 percent at
174.3 yen per kg.
* The contract earlier rose as high as 178.0 yen, the highest
for any benchmark since Nov. 14.
* “The yen edged up and the stock market didn’t rise so much.
That’s sapping the momentum in rubber as well as other
commodities here,” said a manager at a Japanese trading firm.
“As for rubber, fundamentals have had little to do with it.
It’s been driven by external factors in the past few weeks, such
as currencies and stocks,” he said.
* Technical charts suggest an uptrend towards 185 yen, the
manager said, adding that the current market rise without a major
recess could eventually result in a steep turnaround.
* The dollar reversed early gains against the yen and was
little changed at 100.45 yen, after climbing 0.8 percent on
Thursday. [USD/] A stronger yen deflates yen-based futures
prices.
* Japan’s Nikkei share average touched a three-month high
above the key 9,000 level before trimming gains as some players
took profits after a sharp rally. The Nikkei <.N225> ended up
0.54 percent. [.T]
* U.S. oil futures climbed nearly 5.8 percent on
Thursday, fuelled by a rally on Wall Street and data showing the
number of workers filing new claims for unemployment benefits
fell last week. [O/R]
* Japan is set to pass legislation to encourage consumers to
buy new cars as part of a $154 billion economic stimulus package,
including $2,500 in cash incentives for those replacing cars more
than 13 years old. [ID:nT195388]
* Prime Minister Taro Aso said on Friday Japan’s economy was
in crisis, as he announced government plans to spend $154 billion
to help lift the country out of its deepest recession since World
War Two. [ID:nT12543]
* Asian physical rubber prices were unchanged on Friday as
market participants in the region were mostly away for Easter.
* The Thai government called a holiday for Friday as it
struggles with the impact of political unrest that has caused
traffic chaos in Bangkok. It also aims to provide better security
for an Asian summit this weekend. [ID:nBKK467316]
* Financial markets in Singapore and Indonesia were closed
for the Easter holiday.

PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH THURSDAY
Grade Price Change
Thai RSS3 (May) $1.70/kg unchanged
Thai RSS3 (Jun) $1.70/kg unchanged
Thai STR20 (May) $1.65/kg unchanged
Thai STR20 (Jun) $1.65/kg unchanged
Malaysia SMR20 (May) $1.63/kg unchanged
Malaysia SMR20 (Jun) $1.63/kg unchanged
Indonesia SIR20 (May) $0.68/lb unchanged
Indonesia SIR20 (Jun) $0.68/lb unchanged
Thai USS3 53.0 baht/kg unchanged
Thai 60-percent latex (drums, May) $1,320/tonne unchanged
Thai 60-percent latex (bulk, May) $1,200/tonne unchanged

Source: Reuters

TOKYO, April 9 (Reuters) – Key Tokyo rubber futures jumped to their highest in almost five months on Thursday moving closer to the key 180 yen level, spurred by firm oil, a weak yen and strong stocks, which added to an already favorable technical chart.
* Traders, however, were cautious about assessing the potential impact on the market of a ruling party draft proposing that the Japanese government spend a bigger-than-expected $154 billion on economic stimulus. [ID:nT285727]
* The key Tokyo Commodity Exchange rubber contract for September delivery <0#JRU:> ended at 174.7 yen per kg, up 7.0 yen or 4.2 percent, after hitting an intraday peak of 176.6 yen, the highest since Nov. 17.
* TOCOM rubber staged a bounce from Wednesday when futures fell 4 percent to end below 170 yen snapping a six-day rally.
* “Reaction to the stimulus news has to be limited as current economic conditions remain severe, and there is also the risk that recovery could be stifled as massive bond issuances put upward pressure on long-term interest rates,” said Hitoshi Inagawa, senior manager at Yutaka Shoji Co.
* “The market is supported by favourable external factors and the chart outlook, but remains vulnerable as support primarily comes from producers shrinking supply rather than demand recovering,” he said.
* Oil rose about $2 to above $51 on Thursday, taking heart from strong stocks and base metals prices. [O/R]
* The dollar inched up against the yen to recover the 100 yen mark on Thursday. [USD/]
* Japan’s Nikkei average climbed 3.7 percent to a three-month closing high on Thursday led by a rise in electronic firm shares, which were cheered by the economic stimulus plan that raised hopes of revived consumer spending. [.T]
* U.S. stocks snapped a two-day slide on Wednesday on news the government is shoring up life insurers and optimism about consumer spending after Bed Bath & Beyond Inc reported a better than expected profit. [.N]
* General Motors Corp and Chrysler launched government-backed assistance programmes for parts supplies on Wednesday and the task force overseeing the carmakers’ restructuring was expected to meet with GM this week to speed up the process. [ID:nL8402203]
* Asian physical rubber prices were steady to slightly lower on Thursday, but support was firm as supplies remained tight while some demand was still detected out of China, the world’s largest consumer.

PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH WEDNESDAY
Grade Price Change
Thai RSS3 (May) $1.70/kg unchanged
Thai RSS3 (Jun) $1.70/kg unchanged
Thai STR20 (May) $1.65/kg unchanged
Thai STR20 (Jun) $1.65/kg unchanged
Malaysia SMR20 (May) $1.63/kg -$0.02
Malaysia SMR20 (Jun) $1.63/kg -$0.02
Indonesia SIR20 (May) $0.68/lb -$0.02
Indonesia SIR20 (Jun) $0.68/lb -$0.02
Thai USS3 53.0 baht/kg unchanged
Thai 60-percent latex (drums, May) $1,320/tonne unchanged
Thai 60-percent latex (bulk, May) $1,200/tonne unchanged

Source: Reuters