[Dow Jones] Physical prices of Thai USS3 rubber rise to THB77.58-THB77.88 vs THB76.21-THB76.82 yesterday as supplies stay tight because of rain. Total availability in three central markets of Thailand 49 tons vs 25.7 tons yesterday; 5 tons in Hat Yai, 9 tons in Surat Thani, 35 tons in Chandee. “Factories need more raw material to execute their orders for processed rubber,” as less than 50 tons isn”t enough, says trader in Hat Yai–availability in 2H most days has been less than 100 tons, while requirement close to double of that volume; adds exporters had committed RSS3, STR20 grade rubber shipment at cheaper rates, but higher raw material costs have put them in quandary. Factories ready to pay even more than THB78/kg to dealers outside central markets. (SAM)

Source: Dow Jones

[Dow Jones] Tocom RSS3 rubber futures settle higher as funds restructure portfolio. “There”s a perceptible shift in investment toward commodities from currency markets, which is supporting prices,” says analyst in Singapore. Rubber prices gaining from both speculative investment, strong fundamentals, says broker in Tokyo; adds prices may rise to Y250/kg in next few days. Benchmark Tocom RSS3 rubber futures settle Y6.3 higher at Y244.7/kg, close to intraday high of Y245.2. (SAM)

Source: Dow Jones

SINGAPORE, Nov 19 (Reuters) – Tokyo rubber futures rallied to
their highest level in 13 months on Thursday as oil moved closer
to $80 a barrel, but dealers also expected a correction as spot
buyers began to complain about high prices.
* TOCOM’s rubber contract for April delivery <0#JRU:> settled
6.3 yen per kg higher at 244.7 yen a kg after trading as high as
245.2 yen — its strongest since last October.
* The contract has gained around 4 percent this week, which
was also driven by tight supplies in Southeast Asia after the dry
wintering season curbed supply in Indonesia and heavy rains
disrupted the flow of latex in Thailand and Malaysia.
* “I think we have to be careful because this market can go
for a sharp correction anytime. There could be profit taking
before we reach new highs,” said a dealer in Thailand’s southern
city of Hat Yai.
* “Also, the problem is whether buyers want to buy at current
levels or not,” he added.
* Physical prices rose in Southeast Asia on Thursday to track
gains in Tokyo but there were no reports of deals. [ID:nSP486658]
* Late on Wednesday, tyre makers bought Indonesia’s SIR20
grade at 113.50 U.S. cents per pound for February and March
shipment. January changed hands at 114.50 cents.
* U.S. crude futures edged higher just below $80 a
barrel on Thursday, trading in the middle of recent ranges and
taking cues from the dollar and weather in the United States.
[O/R]

Source: Reuters

SINGAPORE (Dow Jones)–The following are Malaysian closing physical rubber Prices at 0900 GMT

Grade Sen/Kg US Cents/Kg
Buyers Sellers Buyers Sellers
SMR CV 878.50 887.50 263.75 266.45
SMR L 849.00 857.50 254.90 257.45
SMR 5 – 852.00 – 255.80
SMR 10 833.50 842.00 250.25 252.80
SMR 20 831.50 840.00 249.60 252.20

Source: Dow Jones

Nov. 19 (Bloomberg) — The dollar and yen strengthened and the Topix Index fell for a seventh day as Japanese companies tapped equity markets to ride out a slump in the world’s second- largest economy. The New Zealand dollar weakened.

The Topix lost 2 percent to 833.12 as of 2:22 p.m. in Tokyo, suffering its longest losing streak since July, as Mitsubishi UFJ Financial Group Inc. and Nomura Real Estate Residential Fund Inc. filed to sell shares. The dollar and yen rose against their 14 most-traded counterparts, according to data compiled by Bloomberg. Stock declines were limited after Maxis Bhd. climbed as much as 10 percent on its trading debut in Malaysia.

Investors who want to be “overweight” Japanese stocks during the next year compared with those who plan to be “underweight” dropped this month to the lowest level since November 2002, according to a report yesterday from Bank of America Corp.’s Merrill Lynch & Co. unit. Japan’s economy is a drag in the region that’s leading the recovery from first global recession since World War II. Singapore today forecast growth of as much as 5 percent in 2010.

“Risk aversion is taking hold somewhat, bringing down Japan’s stocks, as serious concerns remain about the financial sector,” said Masahide Tanaka, senior strategist in Tokyo at Mizuho Trust & Banking Co., a unit of Japan’s second-largest lender. “Japan’s deflation-locked economy is clearly lagging behind others toward recovery.”

Dollar, Yen, Gold

The dollar rose 0.3 percent versus the euro to $1.4912 and the yen strengthened 0.6 percent against the 16-nation European currency to 132.91. Gold, a hedge against a decline in the dollar, dropped 0.4 percent after reaching a record $1,153.40 an ounce yesterday.

“Gold’s looking a bit overbought,” Lin Yuhui, deputy general manager at Jinhui Futures Co., said from Shenzhen.

New Zealand’s dollar, known as the kiwi for the flightless bird on its currency, fell against all major counterparts after an opposition political party said it no longer supported the central bank’s efforts to target inflation.

“The system we have causes widespread damage to the tradable sector,” Labour Party leader Phil Goff said today in Wellington. “The battle against inflation is no longer New Zealand’s sole over-riding policy objective.”

The kiwi lost 1.2 percent, headed for its biggest decline this month. The Australian dollar weakened for a third day against the U.S. currency, losing 0.6 percent.

Mitsubishi UFJ declined 4.1 percent to 464 yen after filing with regulators to raise as much as 1 trillion yen ($11.2 billion) in its second share sale since January as regulators demand banks bolster capital. A sale of that size would be Japan’s biggest public sale of additional common shares, Bloomberg data show.

Nomura Real Estate

Nomura Real Estate sank 8.8 percent to 351,000 yen. The real estate investment trust plans to raise as much as 11.5 billion yen from a sale of new shares, according to a filing with Japan’s Finance Ministry.

The drop in Japanese shares dragged the MSCI Asian Pacific Index to a 0.9 percent decline to 117.48. The MSCI Emerging Markets Asia Index rose 0.4 percent to a 16-month high before slipping 0.3 percent to 396.02. Maxis, Malaysia’s biggest mobile-phone operator, jumped to as much as 5.50 ringgit ($1.63) in its first day of trading in Kuala Lumpur after its $3.3 billion initial public offering this month.

Grand Korea Leisure Co., which started trading on the Korea Exchange, surged 36 percent to 16,350 won ($14.13) from the initial share price of 12,000 won. The company was rated “buy” as Daewoo Securities Co. initiated coverage with a 16,000 won price target.

Asia’s Growth

The International Monetary Fund raised its forecast for growth in the global economy next year to 3.1 percent from 2.5 percent, led by a 9 percent expansion in China and 6.4 percent in India, the Washington-based organization said on Oct. 1. That compares with growth of 1.7 percent in Japan, 1.5 percent in the U.S. and 0.3 percent in the euro region.

“Money is flowing to Asia to take advantage of its stronger and more resilient growth,” Jason Chong, who helps oversee $1.6 billion as Chief Investment Officer at UOB-OSK Asset Management in Kuala Lumpur. “If you look at the world population, 60 percent of the world population is in Asia. It is this trend of increasing domestic consumption that will make Asia more resilient in terms of growth going forward.”

Singapore’s economy will expand 3 percent to 5 percent in 2010 after shrinking as much as 2.5 percent this year, the trade ministry said today. Gross domestic product jumped at a revised annualized rate of 14.2 percent last quarter from the previous three months, the second consecutive climb.

Malaysia’s ringgit and Indonesia’s rupiah led declines in Asian currencies on speculation policy makers will restrain gains to support exports. The ringgit dropped 0.5 percent to 3.3840 per dollar. The rupiah declined 1.4 percent to 9,530.

Central Banks Wary

“Most of the traders are aware central banks in this region have been quite wary of the strength in local currencies,” said Tetsuo Yoshikoshi, a senior economist in Singapore at Sumitomo Mitsui Banking Corp. “The over-extension of the strengthening has triggered some kind of a correction.”

Rubber futures in Tokyo climbed as much as 2.6 percent to the highest in almost 14 months as shippers in Thailand, the largest producer, raised prices.

“Heavy rains hinder tapping,” said Takaki Shigemoto, a commodity analyst at research and investment company JSC Corp. The April-delivery contract rose as much as 6.2 yen to 244.60 yen a kilogram.

Rice futures advanced for a second day after Thai Prime Minister Abhisit Vejjajiva said yesterday that India was seeking to buy as much as 2 million metric tons. The Philippines, the world’s top importer, has also advanced purchases this month after storms damaged local crops. The January-delivery contract on the Chicago Board of Trade gained as much as 0.5 percent to $15.27 per 100 pounds.

Source: Bloomberg