[Dow Jones] Tocom RSS3 rubber futures settle higher on short covering, overnight gains in crude oil, stronger yen. Physical demand for rubber, positive leads from other asset classes supportive for prices today, says Tokyo-based trading executive. US dollar falls below Y91, hovering around Y90.68; may move to Y90, according to analysts. Nymex light, sweet crude oil for October delivery settled up $1.58, or 2.2%, yesterday at $72.51/bbl, highest since Aug. 28. Benchmark Tocom RSS3 rubber futures settles Y3.5 higher at Y206.8/kg after reaching intraday high of Y210.4. Most traders put technical resistance at Y208, then Y210. Prices fell below Y190/kg Monday. (SAM)

Source: Dow Jones

Sept. 17 (Bloomberg) — Rubber advanced for a third day after crude oil increased, raising the appeal of the commodity as an alternative to synthetic products made from petroleum.

Futures in Tokyo gained as much as 3.5 percent to the highest since Sept. 14, when prices fell the most in nine months on concern that U.S. tariffs on tire imports from China may weaken rubber demand in the Asian country.

“Rubber chased a rally in oil and other commodities,” Shuji Sugata, research manager at Mitsubishi Corp. Futures & Securities Ltd., said by phone today. “Good economic data from the U.S. also supported rubber prices.”

February-delivery rubber climbed 1.7 percent to 206.8 yen ($2,280 a metric ton) a kilogram on the Tokyo Commodity Exchange.

Crude oil in New York jumped 2.2 percent yesterday after the U.S. Energy Department reported stockpiles of the fuel in the biggest energy consuming nation dropped to the lowest level since January.

Crude oil for October delivery was down 11 cents at $72.40 a barrel in electronic trading on the New York Mercantile Exchange at 3:49 p.m. Singapore time.

Reports on U.S. industrial production and consumer prices yesterday showed the country is emerging from the recession.

A report today may show U.S. builders broke ground in August on the most houses in nine months, another sign the industry that precipitated the worst financial crisis since the Great Depression is stabilizing, economists said. Separate data from the Federal Reserve Bank of Philadelphia may show manufacturing in the region increased this month.

Source: Bloomberg

[Dow Jones] Tocom RSS3 rubber futures rise 4.8% on stronger yen, aggressive buying in cash market, crude oil holding above $70/bbl. Nymex crude”s relative strength, including brief stint in positive territory on Globex, U.S. dollar being “capped below Y92″ bullish, says analyst in Singapore. Rubber prices seem to have bottomed out for time being, prompting fresh buying among investors, says Tokyo-based broker. Traders put immediate resistance at Y205/kg. Benchmark Tocom February contract settles Y6.3 higher at Y203.3/kg after reaching intraday high of Y206.4/kg. (SAM)

Source: Dow Jones

SINGAPORE (Dow Jones)–The Tokyo Commodity Exchange Tuesday announced a slew of initiatives to increase volumes, including direct access to overseas investors, a market maker program, opening of membership to proprietary firms and increased position limits for investment trusts.

Some of the initiatives may be implemented as early as next month, according to a statement.

Tocom proposes to introduce “remote membership” for overseas investors that would allow them direct access, enabling them to trade directly without opening an office in Japan or routing trades through a broker member.

Once approval from the Ministry of Economy, Trade and Industry is obtained, remote membership for overseas investors and opening of membership for proprietary trading firms could begin Oct. 8.

A senior Tocom official had told Dow Jones Newswires last week a plan for remote membership was in the offing.

Source: Dow Jones

TOKYO, Sept 16 (Reuters) – Benchmark Tokyo rubber futures are resuming an uptrend, after forming a rectangular chart pattern since prices hit six-week lows earlier this week.
The Tokyo Commodity Exchange rubber contract for February 2010 delivery has been in a rectangle formation bounded by support at 192-193 yen and resistance around 211-212 yen that has developed since August.
For a graphic showing the pattern. click:

http://graphics.thomsonreuters.com/099/JP_RBR0909.gif

The market has tested these horizontal lines twice in August, forming two triangles, and now a third try is about to be completed, suggesting a break through the resistance is imminent, said Masato Miyanaga, a senior adviser at H.S. Futures in Tokyo.
“The market has tested the support level three times and is rebounding, signalling the start of a bull trend,” he said.
Since August, prices were confined to the rectangle formation, which reflected a pause in a trend as bears and bulls were in a tug-of-war and supply and demand were balanced.
Miyanaga said if prices break above 211-212 yen again, it will pave the way for an upside target of 230 yen — double the height of the rectangle — the gap between resistance and support.
If closing prices fall below the support line around 192-193 yen for two consecutive days, then it is time to cut losses and close out long positions, he said.
Key rubber futures prices were up 6.1 yen at 203.1 yen on Wednesday.

Source: Reuters