TOKYO, April 8 (Reuters) – Tokyo rubber futures fell 4 percent to end below 170 yen on Wednesday, as profit taking and weak stock prices helped snap a six-day rally that had lifted prices to their highest in almost five months the previous day.
* Prices gained about 16 percent during the recent rally as improved technical charts and better German car sales figures encouraged buying on dips.
* Traders had warned, however, that the pace of the rise was too fast to be sustained.
* The key Tokyo Commodity Exchange rubber contract for September delivery <0#JRU:> ended at 167.7 yen per kg, down 7.0 yen, or 4 percent, up a touch from an intraday low of 167.1 yen.
* It rose to as high as 174.9 yen on Tuesday, the highest intraday level for any benchmark since Nov. 17.
* Some traders said charts indicated that TOCOM rubber could rise again, though it was not clear if it would be able to hold at a higher level, given a lack of strong news about improvements in the global economy.
* “I think TOCOM rubber will challenge the 180-yen level … but it will fall again if it fails to hold above that line,” a Tokyo-based trader said.
* U.S. crude futures fell below $48 per barrel on Wednesday pressured by an American Petroleum Institute report of a larger-than-expected build in U.S. crude supplies. [O/R]
* Market participants are also focusing on the fate of General Motors Corp . A source familiar with the company’s plans told Reuters on Tuesday that GM is in “intense” and “earnest” preparations for a possible bankruptcy filing. [ID:N07463416]
* The benchmark Nikkei average <.N225> lost close to 3 percent on Wednesday, as LCD TV maker Sharp Corp doubled its loss estimate for the business year just ended and other exporters were hurt by a stronger yen. [.T]
* The yen rose on Wednesday as falls in share prices and worries about upcoming earnings results for big U.S. companies prompted investors to seek currencies perceived as safer assets. [USD/]
PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH TUESDAY
Grade Price Change
Thai RSS3 (May) $1.70/kg +$0.06
Thai RSS3 (Jun) $1.70/kg +$0.06
Thai STR20 (May) $1.65/kg +$0.03
Thai STR20 (Jun) $1.65/kg +$0.03
Malaysia SMR20 (May) $1.65/kg +$0.05
Malaysia SMR20 (Jun) $1.65/kg +$0.05
Indonesia SIR20 (May) $0.70/lb +$0.02
Indonesia SIR20 (Jun) $0.70/lb +$0.02
Thai USS3 53.0 baht/kg +1 baht
Thai 60-percent latex (drums, May) $1,320/tonne +$20
Thai 60-percent latex (bulk, May) $1,200/tonne unchanged

Source: Reuters

TOKYO, April 7 (Reuters) – Tokyo rubber futures rose to their highest level in almost five months on Tuesday, as improved technical charts encouraged dip-buying when prices eased, and kept the downside limited.
* Behind the market’s recent advance was the dollar’s rise above 100 yen, which caught some investors off guard and resulted in their short yen-based rubber futures positions being squeezed.
* The key Tokyo Commodity Exchange rubber contract for September delivery <0#JRU:> ended up 4.8 yen or 2.8 percent at 174.7 yen per kg. The benchmark contract rose as high as 174.9 yen, the highest intraday level for any benchmark since Nov. 17.
* “Investment funds started buying after the key contract broke above key resistance of 154 yen,” a manager at a Japanese commodity brokerage said. “Then the currency market surprised yen bulls as the yen fell to 100 to the dollar.”
* “The pace of the rally looks too fast to be sustainable. There’s a chance the market will take a break for now,” he said.
* While some traders express concern about the pace of the rubber market’s rise, they acknowledge tight supply in the physical market and customer demand to keep prices firm.
* A new round of fund buying had been detected as a rise in car sales last month in Germany fuelled optimism that the worst is over in terms of global tyre demand, and because of an improvement in technical charts, traders said.
* A dealer in Jakarta said a deal for SIR20 was done late on Monday for May loading at 66.50 cents per pound and at 67 cents per pound for June loading. He also said that Bridgestone bought RSS4 for September delivery at 161.50 cents per kg, at a slightly higher price offered the previous day, underlying tighter supply was lifting prices.
* The spot April 2009 contract, which reflected a supply shortage in the physical market, rose 6 yen or up 3.7 percent to 169.5 yen.
* After a one-day holiday, Shanghai rubber futures <0#SNR:> rose almost 4 percent on Tuesday in a catch-up rally after the Tokyo market’s recent gains.
* Asian physical rubber prices rose on Tuesday as producers were bullish given firmness in the Tokyo market.
* Cash rubber prices in Thailand, the world’s biggest producer, are likely to fall over the next few weeks due to an increase in supply as farmers resumed tapping earlier than expected, officials and traders said on Tuesday. [ID:nBKK415588]
* Farmers in Thailand usually stop tapping in late February, when the dry season starts, and resume tapping in late April.
* The yen and the dollar climbed on Tuesday, benefiting from defensive position-taking as a flush of optimism that powered a recent rally in stocks and higher-risk currencies gave way to caution about banks. [USD/]
* The dollar traded at 100.3 yen , down 0.7 percent from the previous day but not far from a five-month high of 101.45 yen marked on Monday.
* The Bank of Japan kept interest rates at 0.1 percent as expected. [ID:nT188932]
* Crude oil futures steadied around $51 a barrel on Tuesday after a near 3 percent loss on Monday when Wall Street tumbled. [O/R]

PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH MONDAY
Grade Price Change
Thai RSS3 (May) $1.64/kg +$0.08
Thai RSS3 (Jun) $1.64/kg +$0.08
Thai STR20 (May) $1.62/kg +$0.08
Thai STR20 (Jun) $1.62/kg +$0.08
Malaysia SMR20 (May) $1.60/kg +$0.06
Malaysia SMR20 (Jun) $1.60/kg +$0.06
Indonesia SIR20 (May) $0.68/lb +$0.03
Indonesia SIR20 (Jun) $0.68/lb +$0.03
Thai USS3 52.0 baht/kg +2 bahts
Thai 60-percent latex (drums, May) $1,300/tonne unchanged
Thai 60-percent latex (bulk, May) $1,200/tonne unchanged

Source: Reuters

TOKYO, April 6 (Reuters) – Key Tokyo rubber futures extended their gains on Monday to end up 3.7 percent at their highest close in nearly five months after briefly topping 170 yen, as buying gained momentum on solid oil prices and a weaker yen.
* A rise in car sales last month in Germany offered hope to the rubber market, but traders said the uncertain fate of ailing U.S. automakers still gave cause for caution.
* The key Tokyo Commodity Exchange rubber contract for September delivery <0#JRU:> finished the day at 169.9 yen per kg, up 6.1 yen or 3.7 percent, the highest finish for the lead contract since Nov. 17. The intra-day high was 170.2 yen.
* The lead contract has gained about 12 percent since the current rally started on March 31.
* “Rubber prices are rising as the pace of the yen’s fall has been faster than previously thought and oil prices are holding steady around $50,” said a trader at a Japanese trading house.
* “With the German news, some people are seeing that the price decline over the past few months has been overdone. But the hurdle for a sustained market rally remains, given that the fate of GM is not finalised yet,” he said.
* U.S. automaker General Motors Corp will move quickly into bankruptcy if necessary, Chief Executive Fritz Henderson said in an interview with the Financial Times newspaper published on Friday. The company warned there is a growing risk it could file for bankruptcy by June as it has 60 days to reach deeper concessions with bondholders and unions after its previous restructuring plan was rejected by the U.S. government. [ID:nL3241831]
* Germany will extend incentives aimed at encouraging people to scrap old cars and buy new, fuel-efficient vehicles, though the subsidies are likely to be reduced, ruling party sources said on Thursday. [ID:nL2361359]
* German car sales jumped 40 percent in March thanks largely to the government incentives, data showed last week. [ID:nL2696446]
* Asian physical rubber prices were little changed on Monday as traders carefully eyed the fate of GM amid growing optimism about the global economy, which has boosted stock markets.
* “The major producers, Thailand, Indonesia and Malaysia, are keeping a tight grip on supplies, not offering more than necessary as they remain sceptical about some optimism over recovering demand for autos,” the trader said.
* The U.S. dollar was up 0.5 percent against the yen, with the weaker yen helping to inflate yen-based rubber prices. [USD/]
* Oil prices rose above $53 a barrel on hopes for a recovery in the global economy. [O/R]

PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH FRIDAY
Grade Price Change
Thai RSS3 (May) $1.56/kg unchanged
Thai RSS3 (Jun) $1.56/kg unchanged
Thai STR20 (May) $1.54/kg unchanged
Thai STR20 (Jun) $1.54/kg unchanged
Malaysia SMR20 (May) $1.54/kg unchanged
Malaysia SMR20 (Jun) $1.54/kg unchanged
Indonesia SIR20 (May) $0.65/lb unchanged
Indonesia SIR20 (Jun) $0.65/lb unchanged
Thai USS3 50.0 baht/kg unchanged
Thai 60-percent latex (drums, May) $1,300/tonne unchanged
Thai 60-percent latex (bulk, May) $1,200/tonne unchanged

Source: Reuters

TOKYO, April 3 (Reuters) – Key Tokyo rubber futures closed above 160 yen on Friday, extending their gains and briefly rising more than 4 percent, bolstered by a weaker yen and stronger crude prices.
* The key Tokyo Commodity Exchange rubber contract for September delivery <0#JRU:> finished at 163.8 yen per kg, after earlier rising 4.5 percent or 7.1 yen to an intraday high of 165.2 yen.
* It was the first time since Nov. 19 for the benchmark to rise above 160 yen.
* The lead contract has risen about 7 percent this week.
* Some traders had doubts about how high rubber would rally, however, as it was drawing its strength from external factors.
* “Technically it could climb to a little above 180 yen, but fundamentals don’t support that sort of rise,” one Tokyo-based trader said.
* He said the economy had to show solid growth, and not just bottom out, for rubber demand to recover.
* World leaders at the G20 meeting in London set out a $1.1 trillion package to help revive the global economy on Thursday. [ID:nL270941]
* The dollar rose above the 100 yen threshold for the first time in five months on Friday. [USD/]
* U.S. crude futures rose to around $53 a barrel on Friday, regaining ground from an earlier dip and extending the previous session’s gains when they rose nearly 9 percent on renewed hopes after the G20 summit. [O/R]
* Japan’s Nikkei stock average rose 0.3 percent on Friday, hitting a three-month closing high on increasing optimism about the U.S. economy. [.T]
* Rubber inventories in warehouses monitored by the Shanghai Futures Exchange fell 0.3 percent in the week to Thursday, it said on Friday. [ID:nBJD000653]
* A leading government economist told Reuters that it was still too early to say the Chinese economy has touched bottom, but the government is also in no urgent need to launch any new fiscal stimulus policies. [ID:nPEK353764]

PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH THURSDAY
Grade Price Change
Thai RSS3 (May) $1.56/kg +$0.01
Thai RSS3 (Jun) $1.56/kg +$0.01
Thai STR20 (May) $1.54/kg +$0.01
Thai STR20 (Jun) $1.54/kg +$0.01
Malaysia SMR20 (May) $1.54/kg +$0.01
Malaysia SMR20 (Jun) $1.54/kg +$0.01
Indonesia SIR20 (May) $0.65/lb +$0.02
Indonesia SIR20 (Jun) $0.65/lb +$0.02
Thai USS3 50.0 baht/kg +0.5 baht
Thai 60-percent latex (drums, May) $1,300/tonne unchanged
Thai 60-percent latex (bulk, May) $1,200/tonne unchanged

Source: Reuters

TOKYO, April 2 (Reuters) – Key Tokyo rubber futures closed up
nearly 3 percent on Thursday though off a 4-½ month high
touched earlier in the day, as gains in oil prices and bullish
signs in technical charts boosted the market.
* Technical charts suggest rubber could rise to 180 yen per
kg in the mid to long term.
* News that U.S. auto sales posted a smaller-than-expected
fall in March also helped improve market sentiment, traders said.
* The key Tokyo Commodity Exchange rubber contract for
September delivery <0#JRU:> closed at 158.1 yen per kg, up 4.3
yen or 2.8 percent from the previous day, after earlier touching
159.4 yen, the highest since Nov 19.
* “Last year, the market had fallen to 100 yen after peaking
around 350-360, hurt by a stream of bad news. Having experienced
such a steep decline, investors are less and less sensitive to
bad news. They are more sensitive to good news,” said a manager
at a Japanese trading firm.
“Technical charts have improved since last week and supported
the bullish mood,” he said. He said the market’s range has risen
to between 140 and 160 yen since the key contract broke above 150
yen last week. The previous range was 120-140 yen, he said,
adding that prices could go as high as 180 yen.
* A Reuters poll of 10 analysts and dealers expect on average
that the TOCOM benchmark sixth-month contract , currently
September 2009, will reach 151.3 yen by the end of this month.
[ID:nBKK381314]
* Indonesia’s natural rubber exports may drop below 2 million
tonnes, the lowest in five years, as the global crisis hits
demand, an industry official told Reuters in an interview.
[ID:nnJAK503627]
* U.S. crude futures rose to about $50 a barrel on
Thursday as further supply cuts by OPEC and gains in stock
markets offset worries about the global economy. [O/R]
* U.S. auto sales fell 37 percent in March, a
smaller-than-expected drop that encouraged hope the world’s
largest car market is nearing bottom after a freefall that has
pulled the industry into a deepening crisis. [ID:nN01293914]
* In Japan, industry-wide auto sales fell 25 percent in March
from a year earlier to 546,098 vehicles. [ID:nTKG004294]
* In the physical market prices were little changed.

PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH WEDNESDAY
Grade Price Change
Thai RSS3 (May) $1.55/kg unchanged
Thai RSS3 (Jun) $1.55/kg unchanged
Thai STR20 (May) $1.53/kg -$0.02
Thai STR20 (Jun) $1.53/kg -$0.02
Malaysia SMR20 (May) $1.53/kg -$0.02
Malaysia SMR20 (Jun) $1.53/kg -$0.02
Indonesia SIR20 (May) $0.63/lb unchanged
Indonesia SIR20 (Jun) $0.63/lb unchanged
Thai USS3 49.5 baht/kg +0.5 baht
Thai 60-percent latex (drums, May) $1,300/tonne unchanged
Thai 60-percent latex (bulk, May) $1,200/tonne unchanged

Source: Reuters