TOKYO, Oct 27 (Reuters) – Key Tokyo rubber futures were little changed on Tuesday after bargain hunters helped the market recover earlier losses made on weaknesses in other commodities such as gold and oil.
* The most active Tokyo Commodity Exchange rubber contract for March delivery <0#JRU:> fell 0.1 percent to 230.5 yen per kg, or down 0.3 yen from the previous settlement.
* The contract rose as high as 235.7 yen on Friday, the highest for any benchmark since October 2008, when technical buying related to Monday’s expiry of the October contract helped push up prices.
* The newly listed April contract, which debuted on Tuesday, stood at 230.7 yen in late Tuesday trading.
* The April contract fell to a low of 228 yen in early trade, weighed down by oil’s extended losses and gold’s drop to a three-week low. But the fall in rubber prices encouraged bargain hunters, who pushed prices higher close to the day’s highs, traders said.
* Japan’s crude rubber inventories totalled 4,195 tonnes as of Oct. 20, down 16.4 percent from 10 days earlier, data from the Rubber Trade Association of Japan showed. [ID:nSP284959]
* Thailand’s rubber cooperatives are to sign a deal to sell 3,000 tonnes of rubber sheet per month to a South Korean dealer, a cooperative official said on Tuesday. [ID:nBKK180219]
* U.S. crude futures lost ground for a fourth day to stand below $79 a barrel on Tuesday, hurt by a stronger dollar and concerns that a sluggish economic recovery would keep fuel demand low. [O/R]
* The dollar stayed near a one-month high above 92.20 yen on Tuesday . A weaker yen improves sentiment as it inflates yen-priced futures prices.

Source: Reuters

Oct. 27 (Bloomberg) — Rubber declined for a second day after crude oil slumped the most in a month, reducing investor interest in the commodity as an alternative to synthetic products made from petroleum for use in tires.

Futures in Tokyo fell as much as 1.3 percent to 227.7 yen ($2,475 a metric ton), retreating further from a one-year high of 235.7 yen reached Oct. 23. Oil slipped yesterday as U.S. equities slumped on concern the government will phase out a tax credit for homebuyers, and as OPEC may raise production targets when it meets in December after the International Energy Agency warned that rising prices threaten the global economic recovery.

“Rubber was sold in tandem with oil and other commodities as a slump in global stocks reduced the risk appetite of investors,” Shuji Sugata, research manager at Mitsubishi Corp. Futures Ltd., said today by telephone. Prices could fall to as low as 210 yen if oil breaks below $75 a barrel, he added.

March-delivery rubber declined 0.1 percent to settle at 230.5 yen a kilogram on the Tokyo Commodity Exchange. April- delivery rubber, listed on the exchange today, settled at 230.8 yen after opening at 228.8 yen.

Futures often move in the same direction as crude oil as competing synthetic rubber is made from naphtha, distilled from petroleum. December-delivery oil dropped 2.3 percent to close at $78.68 a barrel in New York yesterday, the biggest decline since Sept. 24 and the lowest settlement since Oct. 16. It traded up 0.2 percent at $78.86 as of 4:25 p.m. Tokyo time.

“Rubber futures trimmed earlier losses as a slide in oil came to a halt in Asian trading today,” Takaki Shigemoto, a commodity analyst at research and investment company JSC Corp. in Tokyo, said today by phone.

Japan’s Currency

Losses in rubber futures were also limited as Japan’s currency fell to the lowest level in a month against the dollar, raising the appeal of yen-denominated contracts, Sugata said.

The dollar strengthened on concern U.S. bank losses will derail the global economic recovery, sapping demand for higher- yielding assets. The Standard & Poor’s 500 Index slid 1.2 percent in New York yesterday, led by bank shares after analyst Dick Bove downgraded Fifth Third Bancorp, SunTrust Banks Inc. and U.S. Bancorp on concern loan losses will remain high.

January-delivery rubber on the Shanghai Futures Exchange settled down 0.1 percent at 19,155 yuan ($2,805) a ton. Prices were capped because of rising inventories, Shigemoto said.

Rubber inventories increased 5,526 tons to 110,683 tons, the Shanghai Futures Exchange said on Oct. 23. The volume was the largest level since November, 2004.

Source: Bloomberg

[Dow Jones] Tocom RSS3 rubber futures lower on weak crude, profit-taking ahead of October contract expiry. “Some investors are rolling over their positions, others are liquidating them,” says Tokyo-based broker. Decline in crude oil, gold prices resulting in near-term price retracement, says Avtar Sandu, manager, Phillip Futures; adds long-term outlook still positive. Benchmark Tocom RSS3 rubber futures trading Y2.1 lower at Y231.8/kg after reaching intraday low of Y229.9. (SAM)

Source: Dow Jones

Oct. 23 (Bloomberg) — Rubber climbed to a one-year high and posted the largest weekly gain in more than nine months on speculation rising crude oil and economic growth in China, the biggest consumer of the commodity, may boost demand.

Futures in Tokyo reached 235.7 yen a kilogram ($2,573 a metric ton), the highest level since Oct. 6, 2008. Oil was poised for a fourth week of advances, increasing the appeal of the commodity as an alternative to synthetic products made from petroleum. China’s economy expanded last quarter the fastest pace in a year.

“Oil and precious metals went up” helping rubber rally, Takaki Shigemoto, a commodity analyst at research and investment company JSC Corp. in Tokyo, said today by phone. China’s economic growth added fuel to commodity gains, he said.

March-delivery rubber rose as much as 3.5 percent on the Tokyo Commodity Exchange before closing at 233.9 yen. The contract advanced 9.9 percent this week, the biggest such gain since January.

Rubber for January delivery on the Shanghai Futures Exchange advanced 0.8 percent to settle at 19,140 yuan ($2,803) a ton.

Crude oil for December delivery was up 26 cents at $81.45 a barrel. Oil, which advanced 3.1 percent this week, has jumped 83 percent this year.

China’s gross domestic product grew 8.9 percent in the third quarter, the statistics bureau said yesterday. The country’s economy expanded as stimulus spending and record lending growth helped the nation lead the world out of recession.

Yesterday’s data also showed the country’s industrial production rose 13.9 percent in September from a year earlier, the fastest pace in more than a year as tax cuts and subsidies spurred record vehicle sales in the nation for General Motors Co. and Volkswagen AG.

Rubber inventories increased 4,404 tons in the week ended Oct. 15 to 105,157 tons, the most since November 2004, the Shanghai exchange said last week.

Source: Bloomberg

[Dow Jones] Tocom RSS3 rubber futures settle up on crude oil”s rise above $80/bbl but off highs on profit-taking. “Since the market has already gained sharply this week, investors are now quickly booking profits,” says trader in Thailand. Prices may continue to rise but in halting manner, says Tokyo-based rubber importer. Benchmark Tocom March rubber futures contract settles Y2.3 higher at Y227.7/kg off intraday high of Y230.6, level not seen since October 2008. (SAM)

Source: Dow Jones