[Dow Jones] RSS3 futures on Agricultural Futures Exchange of Thailand settle higher, with benchmark contract breaching previous THB60/kg resistance shortly before close, drawing strength from equity markets, gains in other commodities helping bolster sentiment; further upside now likely though AFET may find immediate technical resistance at THB62/kg, barring fresh bullish fundamental news, while market will also continue to be heavily influenced by external factors, says trader. Benchmark December RSS3 contract settles THB2.00 higher at THB60.50/kg. (ANJ)

Source: Dow Jones

[Dow Jones] Asian cash rubber prices ease, weighed down by weaker futures today, while sluggish interest from buyers also weighs, traders say. China-based end users continue to inquire about shipments for late June, though having bought steadily in recent weeks can now afford to hold off, says trader in Singapore. “The tire makers are starting to quieten down but there appears to still be interest from middlemen, though they only seem interested in small lots of around 200 tons, and they can apparently wait for the price to suit them,” trader notes. Says Thai, Malaysian raw material remains tight due to rain, which closely followed recent wintering season, though Indonesia”s output remains stable. 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

TOKYO, May 18 (Reuters) – Tokyo rubber futures sank to an almost three-week low on Monday, hit by the yen’s rise against the dollar, while investors unwound riskier assets as Tokyo stocks fell to their lowest close since May 1.
* The key Tokyo Commodity Exchange rubber contract for October delivery <0#JRU:> fell 4.5 yen or 2.8 percent to 159.0 yen per kg from Friday’s settlement of 163.5 yen.
* It earlier fell as low as 156.4 yen, the lowest intraday level since April 28.
* A stronger yen deflates yen-based Tokyo futures prices.
* The dollar and yen rose on Friday as worries persisted about global economic prospects after more evidence of recession in Europe and the U.S. triggered stock losses across the globe, prompting investors to seek shelter in the yen in particular. [USD/]
* “Rubber’s fundamentals haven’t changed much,” said a manager at a Japanese commodity brokerage.
“But external factors, like the yen and equities, are now all out of favour (for the rubber market),” the manager said, adding that a fall below the recent low hit on April 23 of 152.4 yen could worsen technical charts and trigger more selling.
* In the Shanghai rubber market, the most active September futures contract <0#SNR:> hit its daily limit-low at 14,555 yuan per tonne in early trade before paring the losses to 14,710 yuan, down 615 yuan from the previous close.
* Oil steadied above $56 a barrel on Monday, pausing from the previous session’s near 4 percent loss amid worries that a strong economic recovery that would boost oil demand was quite far off. The oil market now awaited further economic data and movements in equities markets for directions. [O/R]
* Tokyo’s Nikkei share average <.N225> fell 2.4 percent. [.T]
* In the physical market, rubber prices followed TOCOM and Shanghai futures prices lower.
* Chinese buyers were reluctant to buy physical rubber at the current level for the Thai STR20 grade of around $1.65 per kg, traders said.
* Japan’s Bridgestone Corp <5108.T> was said to have bought some rubber cargoes last week, but other Japanese tyre makers kept adjusting their inventories and refrained from buying, a manager at a Japanese trading firm said.
“There’s no action from Chinese buyers. But they are expected to enter the market when the price of STR20 grade falls to or below $1.50,” the manager added.
* The world’s top three rubber producers could revise down planned export cuts at a meeting in June because prices have risen along with demand, senior officials said last week.
* Toyota Motor Corp <7203.T> has received more than 80,000 pre-sale orders for the new Prius in Japan. [ID:nTFD003300]
* The Obama administration said on Friday it would stand behind General Motors Corp during the remainder of its restructuring. [ID:nN15280299]
* GM said it would drop about 1,600 U.S. dealers as it struggles to slash billions of dollars in operating costs and debt ahead of an anticipated bankruptcy filing by the end of the month.

Source: Reuters

[Dow Jones] Physical prices of Thai USS3 rubber rise slightly, despite early weakness on bellwether Tocom, mostly weaker spot rubber markets, with tight supply following recent wintering season continuing to lend support, says trader in Phuket. Adds rain-induced tapping delays at key southern plantations adding to supply worries. Thai USS3 traded in Hat Yai Central Market at THB55/kg vs THB54/kg yesterday, says trader. (ANJ)

Source: Dow Jones

[Dow Jones] Asian cash rubber prices mostly lower, weighed down by weaker futures, though tight supply continues to offer mild support, say traders. “The buying interest is still there but with futures up and down every day and oil prices coming off the highs, there”s a sense that the spot market lacks direction, so both buyers and sellers appear reluctant, particularly ahead of the weekend,” says trader in Singapore. Heavy rain over the last three days continues to hamper tapping work in southern Thailand”s key producing regions, says trader in Phuket. 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