TOKYO, May 22 (Reuters) – Tokyo rubber futures fell around 1 percent on Friday as the yen extended gains and weak stock markets sapped investor appetite for the industrial commodity.
* The key Tokyo Commodity Exchange rubber contract for October delivery <0#JRU:> fell 1.8 yen, or 1.1 percent, to 160.6 yen per kg from Thursday’s settlement at 162.5 yen.
* “The market looks to have been in a downtrend since the beginning of this month, when it hit a high of 178.90 yen,” said Shuji Sugata, a manager in Mitsubishi Corp Futures and Securities’ research team. “A recovery earlier this week was short-lived, suggesting the market is capped technically.”
* The dollar slid to a five-month low against a basket of major currencies on Friday after a warning that Britain’s triple-A credit rating could be cut stoked worries that the United States could face the same fate.
* The greenback hit a two-month low below 94 yen on Friday. A higher yen deflates yen-based futures prices. [USD/]
* Japan’s Nikkei share average <.N225> fell 0.4 percent with exporters hit by the stronger yen.
* Analysts said stock markets were not moved by the Bank of Japan’s upgrading its assessment of the economy or uncertainty before a June 1 deadline for a pledged restructuring plan by U.S. automaker General Motors , as these had largely been factored in. [ID:nT370656] [ID:nN21325204] [.T]
* Oil hovered above $61 a barrel on Friday, off six-month highs hit the previous day, as disappointing jobs and factory data dented hopes that the economy of the United States, the world’s top energy user, was set for a quick rebound. [O/R]
* Japan’s crude rubber inventories totalled 9,416 tonnes as of May 10, down 4.4 percent from 10 days earlier, industry data showed on Friday. [ID:nT76355]
* The data also showed China’s natural rubber imports rose 28 percent to 178,766 tonnes in April from a year earlier, with the country’s imports from No.2 supplier Indonesia doubling to 60,122 tonnes. But China imported 12 percent less rubber in the first four months of this year than in the same period last year. [ID:nSHA69490]
* Thai rubber exports fell 16.5 percent in April from a year earlier due to limited supply and extra holidays, according to government data and traders on Thursday. [ID:nBKK424275]
* Thailand, the world’s biggest rubber producer, is expected to produce about 3.2 million tonnes of rubber by 2013, around 200,000 tonnes higher than this year’s level due to a state-sponsored planting programme, the Thailand Rubber Research Institute’s head said.

Source: Reuters

[Dow Jones] Asian cash rubber prices lower in very thin trade, with weaker futures main reason for decline, traders say. Supply from Thailand, Malaysia remains tight following recent rain-induced tapping delays, though general lack of buying interest continues to also weigh, says trader in Singapore. 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

[Dow Jones] Tocom rubber futures settle mostly lower in very thin volume, with just 2,327 lots done, inclusive of last night”s session. Firmer yen vs dollar, decline in regional equities main factor pressuring market lower today, says Shuji Sugata, analyst with Mitsubishi Corporation Futures. Adds, outlook remains generally weak due to lack of supportive supply, demand fundamentals, though recent firmness in crude oil prices likely to help cushion fall. Benchmark October RSS3 contract settles Y2.4 lower at Y162.5/kg. (ANJ)

Source: Dow Jones

[Dow Jones] Tocom rubber futures settle with most contracts marginally higher in very thin volume, with just 7,520 lots exchanged, amid continued lack of clear direction, says trader. Adds recent firmness in crude oil market main supportive factor, while steady cash rubber markets due to tight supply following recent wintering season in Thailand, Malaysia, which were closely followed by heavy rain, also lending mild support. Upside likely to be capped at Y166/kg technical resistance, barring fresh supportive leads. Benchmark October RSS3 contract settles Y0.1 higher at Y164.9/kg. (ANJ)

Source: Dow Jones

[Dow Jones] Physical prices of Thai USS3 rubber higher on tight supply, with tapping at key southern plantations still being hampered by rain, says trader in Phuket. Adds firmer futures, recent gains in crude oil prices, steady regional spot markets all seen as supportive factors for USS3, though Thai output likely to increase significantly next month when rains subside, with extra output likely to drag on prices then. Thai USS3 traded in Hat Yai Central Market at THB55.7/kg vs THB55/kg yesterday, says trader. (ANJ)

Source: Dow Jones