[Dow Jones] Asia physical rubber prices ease, tracking decline in Tocom rubber futures, but overall fundamentals still strong. “There are deals taking place at current levels. Tire makers are aggressively looking for Indonesia”s SIR rubber, which is the cheapest,” says Singapore-based exporter; adds there is more demand for Malaysia”s SMR grade in China due to its quality. For daily breakdown of cash prices for all rubber grades, keyword search ASIA PHYSICAL RUBBER. (SAM)

Source: Dow Jones

TOKYO, Aug 25 (Reuters) – The August rubber futures contract on the Tokyo Commodity Exchange expired on Tuesday at 197.2 yen per kg, up 1.8 yen on the day, with 164 lots or 820 tonnes of deliveries.
Last month, the July contract expired at 177.5 yen per kg with 460 lots or 2,300 tonnes of deliveries, which marked the highest delivery amount since January 2007.
Some traders had feared there might be a fall in the August contract on last-minute selling at the expiry on Tuesday. But that did not happen as bullish players decided to receive deliveries, instead of reducing their long positions.
In May, TOCOM introduced a new trading system and stopped disclosing the names of firms involved in deliveries and started giving just the total lots delivered and the price at which deliveries are made.

Source: Reuters

TOKYO, Aug 25 (Reuters) – Key Tokyo rubber futures eased on Tuesday, having reversed earlier gains as renewed concerns about the economic recovery dragged down oil prices as well as Shanghai and other regional equity markets.
* Fund buying was also checked as the yen rose versus the dollar for the first time in five days. A stronger yen deflates yen-based commodity futures prices.
* The key Tokyo Commodity Exchange rubber contract for January delivery <0#JRU:> settled at 201.5 yen per kg, down 3.3 yen from the previous close.
* The benchmark contract rose as high as 205.9 yen during the night session on Monday, its highest since Aug. 17.
* The August contract expired at 197.2 yen on Tuesday, up 1.8 yen from the previous close, with 164 lots of deliveries.
* “A higher expiry of the August contract failed to pull up the other contracts. That’s because there’s a lack of confidence over end-user demand — whether it’s strong enough to warrant the price of 200 yen or higher,” said Hitoshi Inagawa, a senior manager at Yutaka Shoji Co.
“Also, sentiment was undermined by a fall in the Shanghai stock market and the Shanghai rubber market,” he said.
* The most active Shanghai rubber futures contract for January delivery <0#SNR:> fell 310 yuan to 18,535 yuan per tonne.
* U.S. crude futures fell for the first time in six day as Chinese shares plummetted on renewed concerns over the economic recovery, after reaching a 10-month high a day earlier. [O/R]
* Japan’s Nikkei share average <.N225> fell 0.8 percent on Tuesday, hit by profit-taking after surging 3.4 percent the day before, with investors finding few reasons to buy actively before Japan’s Aug. 30 election and U.S. economic data. [.T]
* In the currency market, the yen firmed below 94 to the dollar as equity markets fell and investor interest in higher-yielding currencies ebbed. The low-yielding yen tends to gain when stocks and higher-yielding currencies fall or when weak economic data highlights a long and uncertain road for global recovery. [USD/]
* China’s natural rubber imports jumped 25.8 percent in July from the previous month to 165,876 tonnes, within striking distance of an 11-year high hit in March, customs data showed on Monday. [ID:nSP37016]
* Toyota Motor Corp <7203.T> plans to raise its daily production level in Japan in November compared with a year earlier for the first time in 16 months, thanks to a recovery in demand, the Asahi newspaper reported on Tuesday. [ID:nT44448]

Source: Reuters

[Dow Jones] Tocom RSS3 rubber futures settle lower on profit-taking; fundamentals intact. “Even though prices are lower, they have managed to stay above Y200/kg,” notes Japan-based trading executive; adds physical buying continues among auto makers in Japan, U.S. – but many Chinese traders on sidelines. August contract expired today, with 164 lots delivered. Benchmark Tocom January rubber futures settles Y3.3 lower at Y201.5/kg. (SAM)

Source: Dow Jones

Aug. 25 (Bloomberg) — Rubber production in India, the world’s fourth-biggest grower, will increase from September and meet a target for a full-year gain as latex yield improves during cool weather, a government board said.

Output is forecast to advance 0.3 percent to 867,000 metric tons in the 12 months to March 31, after dropping 13 percent to 209,825 tons in April to July because of dry weather, Sajen Peter, chairman of the state-run Rubber Board, said in an e-mail to Bloomberg News.

“The peak production season is yet to come and any revision of the target will be considered only after December,” Peter said. Similar early shortages in previous years had been “largely” offset by a later increase, Peter said.

A rebound in India’s natural rubber production may help cool a 42 percent jump in local prices in the past six months and meet rising demand for the commodity from tiremakers including MRF Ltd., JK Tyre & Industries Ltd. and Apollo Tyres Ltd. India’s rubber demand has gained from February because of steps taken by the government to boost demand, Peter said.

Rubber futures in Tokyo rallied the most since July 31 yesterday amid optimism a global economic recovery will boost consumption. The January-delivery contract fell 1.9 percent to 200.9 yen per kilogram ($2,137 a ton) at 2:23 p.m. Tokyo time.

India’s output is forecast to rise from last year’s 864,500 tons as production seasonally rises from September during cooler weather after the monsoon ends. More than 90 percent of the country’s rubber is from Kerala state in southern India.

Demand Gaining

Consumption in the year to March is forecast to rise 1.7 percent to 881,000 tons as a recovery in economic growth from the fiscal second half boosts manufacturing, Peter said. April- to-June demand in India, the world’s third-biggest rubber user after China and the U.S., gained 1.4 percent, the board said.

Imports in the 12 months to March 31 are forecast at 80,000 tons compared with 81,545 tons a year earlier

Rubber futures for September delivery on the National Commodity & Derivatives Exchange in India rose 0.6 percent to 10,328 rupees ($212) per 100 kilograms yesterday. The most active contract has gained 31 percent this year.

Natural rubber yields this year in Southeast Asia may “come under pressure” as an El Nino event brings unusual weather, Deutsche Bank AG said in a report this month. Thailand, Indonesia and Malaysia are the world’s top three producers. In India, government incentives to replace lower-yielding older plants with new trees may curb output in the next few years before the new growth become productive, Peter said.

“The accelerated replanting programs, adverse weather conditions and relatively stable currencies in the major producing countries may support an improvement in rubber prices,” he said.

Source: Bloomberg