[Dow Jones] Tocom RSS3 rubber futures higher, rebounds as investors square-off short positions; recovery in crude oil prices also supportive. “Rubber was heavily oversold during the last few days. It is a technical rebound,” says Singapore-based executive at global trading company; adds, prices may recover further. Crude oil is higher during Asian trading hours and yen is staying above Y96 against USD, which is positive for near-term, says trader in Singapore. New benchmark Tocom RSS3 December rubber futures settles Y3.0 higher at Y157.5/kg. (SAM)

Source: Dow Jones

TOKYO, June 24 (Reuters) – The front-month June rubber futures contract on the Tokyo Commodity Exchange expired on Wednesday at 151.6 yen per kg, up 5.6 yen from the previous close, with 86 lots or 430 tonnes of deliveries.
Deliveries fell from 148 lots last month, as activity slowed with supplies disrupted by unseasonal rains in top producer Thailand.
Last month, the May contract expired at 156.5 yen per kg with 740 tonnes of deliveries.
The key November contract <0#JRU:> settled on Wednesday at 152.1 yen per kg, down 0.8 yen from Tuesday’s settlement. From last month, TOCOM stopped disclosing the names of firms involved in deliveries and provided just the total lots delivered and the price at which deliveries were made.

Source: Reuters

TOKYO, June 24 (Reuters) – Key Tokyo rubber futures fell towards 150 yen on Wednesday and hit a three-month low on a decline in crude oil prices.
The key Tokyo Commodity Exchange rubber contract for November delivery <0#JRU:> settled at 152.1 yen per kg, down 0.8 yen or 0.5 percent from the previous day, after hitting a low of 150.5 yen, the lowest for a benchmark contract since March 31.
But prices were in a narrow 4-yen range.
After the benchmark fell below 160 yen earlier this week, the market broke an uptrend in technical charts, prompting funds and investors to unwind their long positions, said a dealer at a Japanese commodity trading firm.
“Funds have been closing out their long positions after their attempt to push prices above key resistance failed, as consumers didn’t follow through with buying due to weak demand,” he said.
“At the same time, buyers have emerged as prices fell, suggesting prices may not fall too far despite the weak technical charts,” the dealer said.
Reflecting doubts about the global economic recovery, commodities across the board, including oil, have been falling.
U.S. crude fell more than $1 per barrel to near $68 on Wednesday after industry data showed a lower-than-expected decline in U.S. crude stocks and a higher-than-expected build in gasoline supplies. [O/R]
Investors were watching the outcome of the Federal Reserve’s two-day policy meeting that ends later on Wednesday for the central bank’s comments on the economic outlook, traders said.
The dollar hovered at its lowest levels for a week against the euro on Wednesday after tumbling sharply across the board as the market readied for the Fed to dampen expectations for higher interest rates. [USD/]
Weaker demand has eroded exports from Thailand, the world’s largest rubber producer. Thai rubber exports fell 19.6 percent in May from a year earlier due to limited supply, in part due to government policy and the sluggish car industry. [ID:nBKK139758]
Malaysian private rubber estates have shrunk 82 percent to 61,000 hectares over nearly 20 years, a senior Malaysian minister said. [ID:nKLR371516]

Source: Reuters

SINGAPORE (Dow Jones)–The following are Tuesday”s rubber prices in Asia, quoted in U.S. cents a kilogram, free on board.

Grade Shipment June 23 June 22
Bids Offers Bids Offers
RSS3 Jul/Aug – 166 – 169
STR20 Jul/Aug – 162 – 164
SIR20 Jul/Aug – 145.5-146 – 148.5
SMR20 Jul/Aug – 160 – 161

Source: Dow Jones

TOKYO, June 23 (Reuters) – Key Tokyo rubber futures fell to their lowest level in nearly three months on Tuesday as investor sentiment was hurt by a drop in oil prices and concerns about the economy.
* The recent sell-off has caused technical charts to worsen, and they now suggest a downtrend towards 140 yen per kg, traders said.
* The key Tokyo Commodity Exchange rubber contract for November delivery <0#JRU:> fell 4.8 yen, or 3 percent, to 152.9 yen per kg. It earlier touched 151.0 yen, the lowest for any benchmark since March 31.
* Oil prices dropped for the third straight session on Tuesday as renewed worries over the uncertain outlook for major economies sparked a sell-off across global equity markets. [O/R]
* “Rubber followed other commodities lower,” said a manager at a Japanese trading company, adding that some fund managers started building up fresh short positions, eyeing 140 yen as a near-term target.
* Investor appetite for risk stayed low on Tuesday, a day after a gloomy assessment of the global economy from the World Bank.
* Regional stock markets dropped with Japan’s Nikkei share average <.N225> sliding almost 3 percent to track a broad sell-off in U.S. stocks on Monday.
* The World Bank said on Monday that prospects for the global economy remained “unusually uncertain” as it cut 2009 growth forecasts for most economies, adding to concerns of a slower turnaround.
* The yen extended recent gains against the dollar — another negative for the Tokyo rubber market. [USD/] A higher yen deflates yen-based commodity futures prices.
* Thai rubber exports fell 19.6 percent in May from a year earlier due to limited supply, in part due to government policy, and weaker demand from the car industry, according to official data and traders on Tuesday.
* Underlining a downtrend in exports by major producers, the head of the Malaysian Rubber Board said on Monday that exports by the world’s No.3 producer may fall 10 percent this year, nearly double a plan to cut exports along with other producers, as global demand from the auto sector remains weak. [ID:nKLR468876]
* A consultancy group said on Monday that moderate recovery in the world economy was expected to help reduce a global surplus in natural rubber in 2010 and 2011.

Source: Reuters