TOKYO, Nov 27 (Reuters) – Japan’s crude rubber inventories totalled 4,721 tonnes as of Nov. 20, up 21 percent from a record low of 3,902 tonnes 10 days earlier, data from the Rubber Trade Association of Japan showed on Friday.
The previous record low was the 4,004 tonnes marked in October last year.
The rise in the latest inventory levels was due to new shipments, as demand stayed weak amid slow domestic economic activity.
The data is updated every 10 days.

Following are details of the association’s latest data:
Nov 20 Nov 10 Oct 31 Oct 20 Oct 10 Crude rubber 4,721 3,902 4,038 4,196 5,018 Natural Latex 227 283 295 268 300
Synthetic (solid) 818 667 801 746 668 Synthetic Latices (D.R.C.) 23 23 23 23 23

Source: Reuters

BANGKOK, Nov 27 (Reuters) – Tokyo rubber futures tumbled
nearly 5 percent to a one-week low on Friday, as the surging
Japanese yen and falling oil prices spurred stop-loss selling,
dealers said.
* The benchmark rubber contract on the Tokyo Commodity
Exchange <0#JRU:> for May delivery fell 11.9 yen, or 4.7 percent,
to settle at 241.2 yen ($2.79) per kg. It fell as low as 240.3
yen per kg, the lowest since Nov. 19.
* “Players liquidated contracts in a bid to stop losses as
the yen surged and oil prices kept falling,” one dealer said.
* The yen hit its highest level in 14 years on the dollar on
Friday and jumped against higher-yielding currencies as investors
cut risky trades due to concerns about debt problems in Dubai,
while Japan signalled growing discomfort with the surge. [ID:
nT35078]. At 0807 GMT, the yen as at 86.35 per dollar.
* A firmer Japanese yen makes dollar-based rubber futures
cheaper and usually encourages players to unwind rubber contracts
to stop losses.
* Dealers said falling oil prices were also a factor that
weighed rubber futures down.
* U.S. crude January futures fell below $73 a barrel
as investors shifted to safe-haven assets.
* Rising Japanese rubber stocks also weighed on TOCOM prices,
dealers said.
* Japan’s crude rubber inventories totalled 4,721 tonnes as
of Nov. 20, up 21 percent from a record low of 3,902 tonnes 10
days earlier, data from the Rubber Trade Association of Japan
showed on Friday. [ID:nT42962]
($1=86.39 Yen)

Source: Reuters

Nov. 27 (Bloomberg) — Rubber slumped by the most in more than two months as investors reduced holdings of risk assets after global equities tumbled amid concern over losses stemming from Dubai World’s attempt to reschedule its debt.

Futures in Tokyo fell as much as 5.3 percent, the largest daily loss since Sept. 14. The MSCI Asia Pacific Index slid 3 percent to 113.99 as of 4:22 p.m. in Tokyo, the biggest drop since Aug. 17, while Japan’s currency surged to a 14-year high against the dollar on haven buying by investors. Dubai World, the government investment company burdened by $59 billion of liabilities, sought to delay repayment on much of its debt.

“Rubber was sold in tandem with other commodities and stocks as news about Dubai debt spurred investors to flight from riskier assets,” Takaki Shigemoto, an analyst at research and investment company JSC Corp. in Tokyo, said today by phone.

Rubber for May delivery, the most-active contract, fell as much as 13.4 yen to 239.7 yen per kilogram ($2,792 a metric ton) on the Tokyo Commodity Exchange before settling at 241.2 yen. Prices fell 0.9 percent this week, the first loss in three weeks.

Dubai, which borrowed $80 billion in a four-year construction boom to transform its economy into a regional tourism and financial hub, suffered the world’s steepest property slump in the worst global recession since World War II.

“If Dubai has to default, that could start a wave of defaults in other areas,” Mark Mobius, Chairman of Templeton Asset Management Ltd. said in an interview on Bloomberg Television from Hanoi. “This may be the trigger to allow for the market to take a rest and pull back.”

Supply Concern

Rubber futures retreated after reaching the highest level in 14 months yesterday amid concern supply from Thailand, the world’s largest producer and exporter, will drop after heavy rain cut output in the nation’s biggest-producing area.

Thai exporters offered so-called RSS-3 grade rubber for December shipment at $2.64 a kilogram today, compared with $2.65 yesterday and $2.55 a week earlier, Shigemoto said.

“Investor focus shifted away from tight market fundamentals to the financial market turmoil,” he said.

Thailand, Indonesia and Malaysia, the world’s biggest rubber producers, ended curbs on exports as the global economic recovery stokes demand and prices of the commodity used in tires and gloves, Abdul Rasip Latiff, chief executive officer of the International Rubber Consortium Ltd., said today. The decision was made last week at a meeting of the International Tripartite Rubber Council, he said.

“News on the termination of export curbs partly drove the rubber price,” Navarat Kaewpratarn, senior marketing official at Future Agri Trade Co., said by phone from Bangkok.

Thailand, Indonesia and Malaysia, which harvest about 7 million tons a year, pared exports by 690,000 tons in the January-July period, approaching the 700,000 ton target set in December to combat a 56 percent slump in prices last year.

“We had the program to improve the price and we’ve met our objective,” Abdul Rasip said in a phone interview.

Rubber for March delivery on the Shanghai Futures Exchange lost 2.7 percent to settle at 21,545 yuan ($3,155) a ton.

Source: Bloomberg

[Dow Jones] Physical prices of Thai USS3 rubber rise to THB81.51-THB81.79 vs THB80.38-THB80.79 yesterday as southern Thailand engulfed by rains, hampering production. “Production has increased marginally, but it is still not enough,” says trader in Phuket. Total availability in three central markets of Thailand 92.5 tons vs 75.7 tons yesterday; 22.4 tons in Hat Yai, 40 tons in Surat Thani, 30 tons in Chandee. Availability in 2H 2009 most days has been less than 100 tons, while requirement is close to double that volume. Factories ready to pay even more than THB82/kg to dealers outside central markets due to scarce supply. (SAM)

Source: Dow Jones

SINGAPORE (Dow Jones)–The International Rubber Consortium has eliminated its controls on natural rubber exports, which were imposed in December last year after a drastic fall in prices, chief executive Abdul Rasip Latiff said Thursday.

“We have achieved our objective. Prices have recovered, supply is tight and stocks are low, so it is no longer necessary to control exports,” Abdul Rasip said.

He said the decision was made during IRCo’’s recent meeting on Malaysia’’s Langkawi island.

IRCo comprises the world’’s three largest natural rubber exporters–Thailand, Indonesia and Malaysia–which control around 70% of the world’’s natural rubber supply.

Last week, Dow Jones reported that IRCo was likely to lift curbs on natural rubber exports due to a surge in prices.

Source: Dow Jones