[Dow Jones] Physical prices of Thai USS3 rubber mixed at THB99.29-THB100.11/kg vs THB99.55-THB99.77/kg on Friday, with highest auction price of TH100.11/kg at Chandee central rubber market. Outside central market, factories even paying around THB101.5/kg, as wintering continues to take its toll on supply of raw material. “We still need to buy as much as we can to replenish the stockpile when prices are not at their highest yet,” says Phuket-based rubber factory executive; adds USS3 prices may move toward TH105 this week amid tight supplies and strong demand. Total quantity sold in three central markets of Thailand estimated at 216.6 tons vs 288.7 tons on Friday: 57.6 tons in Hat Yai, 83 tons in Surat Thani, 76 tons in Chandee. (HLN)

Source: Dow Jones

BANGKOK, Feb 22 (Reuters) – Tokyo rubber futures rose to a
one-month high on Monday, supported by firmness in oil prices and
a weaker yen, but profit-taking capped gains, dealers said.
* Strong futures prices and falling physical supply also
pushed cash rubber prices to a 58-year high on Monday at $3.27
per kg, traders said.
* The benchmark rubber contract on the Tokyo Commodity
Exchange for July delivery rose 7.9 yen, or 2.7 percent,
to settle at 302.5 yen ($3.30) per kg. It went as high as 302.7
yen per kg, the highest since Jan. 21.
* “Rising oil prices and a weaker yen provided additional
support,” one dealer said.
* U.S. oil prices rose above $80 a barrel on Monday,
extending the previous session’s gains, supported by a weaker
dollar, refinery strikes in France and escalating tensions about
Iran’s nuclear programme. [O/R]
* The dollar slipped on Monday as investors reassessed the
chances of an earlier-than-expected interest rate hike by the
Federal Reserve, while the euro was lifted by speculation of a
quick bailout for Greece. [USD/]
* The dollar index <.DXY>, which measures the dollar against
a basket of currencies, dipped about 0.2 percent, having
retreated from an eight-month high hit on Friday.
* The yen fell 0.3 percent against the dollar, helping
to improve sentiment as a weaker yen inflates yen-priced rubber
futures.
* Dealers said TOCOM gains were limited by profit-taking
during intra-day trade.
* However, TOCOM rubber was expected to rise further on
Tuesday after prices stayed above the psychological level of 300
yen per kg, dealers said.
* For details on physical prices, click on [ID:nSGE61L01R]
($1=91.60 Yen)

Source: Reuters

[Dow Jones] Physical prices of Thai USS3 rubber rise to THB99.55-THB99.77/kg from THB99.09-THB99.22/kg yesterday as eager buyers snap up supplies. Suppliers took advantage of higher prices driven by robust demand to release about 72% more stocks. Outside central market, factories paying around THB101/kg. Thailand in wintering season, which typically ends around April, but abnormal weather changes this year due to El Nino adding uncertainty, especially in view of economic recovery, trade participants say. Total quantity sold in three central markets of Thailand estimated at 288.7 tons vs 167.6 tons yesterday: 72.7 tons in Hat Yai, 135 tons in Surat Thani, 81 tons in Chandee. (HLN)

Source: Dow Jones

SINGAPORE, Feb 19 (Reuters) – Tokyo rubber futures inched
down on Friday after briefly hitting 300 yen on speculative
buying, driven by a weaker yen against the dollar and tight
supply in the physical market.
* The most active July 2010 contract on the Tokyo
Commodity Exchange hit an intraday high of 300.2 yen a kg, its
strongest since Jan. 22, as the yen dropped after the U.S.
Federal Reserve raised discount rate.
* The contract settled 1.2 yen lower at 294.6 yen.
* Some dealers expected the contract to revisit the high
again next week, with Chinese buyers returning to the physical
market after the Lunar New Year holidays. Dealers also noted
steady demand from tyre makers.
“Major tyre makers continue their pursuit to buy the
Indonesian grades. They are chasing April and May shipment,”
said a dealer in Jakarta.
* SIR20 was traded late on Thursday at 142 to 143 U.S. cents
per pound, while Thai RSS3 changed hands at $3.18 a kg. The
supply of latex slowed down in Thailand and Indonesia during the
dry wintering season.
* Oil fell more than $1 to below $78 a barrel on Friday,
pushed by the stronger dollar after the U.S. Federal Reserve
raised an emergency lending rate and damped by
higher-than-expected crude inventories in the United States.
[O/R]
* The dollar leapt and the euro hit a nine-month low on
Friday after the Fed’s move signalled it was starting to
normalise monetary policy. [USD/]
* Against the yen, the dollar hit its highest in a month at
92.10 yen . It stopped short of piercing a 200-day moving
average at 92.30 yen which has formed resistance in the past,
and has a longer-term downtrend from June 2007 coming in just
above 93.00 yen.
* For details on physical prices, click on [ID:nSGE61l041]

Source: Reuters

Feb. 19 (Bloomberg) — Rubber declined, tracking a decline in crude oil and Asian stocks, after the Federal Reserve increased its discount rate, triggering concern that government stimulus programs are winding down.

Futures for July delivery in Tokyo fell as much as 0.9 percent after rising earlier to 300.2 yen per kilogram ($3,262 a metric ton), the highest level since Jan. 22. The contract closed at 294.6 yen, a 3.3 percent gain for the week.

Japanese stocks fell the most in two weeks after the Fed raised the discount rate charged to banks for direct loans by a quarter point to 0.75 percent.

“Equity market falls and declining oil prices spilled over to the rubber market, prompting investors to unwind positions,” Chaiwat Muenmee, analyst at DS Futures Co., said from Bangkok.

The MSCI Asia Pacific Index fell 2.3 percent to 115.16 as of 3:54 p.m. in Singapore, the steepest drop since Feb. 5, reversing this week’s advance.

Rubber also declined as falling crude oil prices reduced its competitiveness against rival synthetic rubber. Oil dropped for the first time in four days as the dollar’s rally weakened the appeal of the commodity as an alternative investment.

In the cash market, Thai shippers offered so-called RSS-3 grade rubber for April shipment at about $3.30 a kilogram today from $3.18 yesterday, said Kazuhiko Saito, chief analyst at Tokyo-based broker Fujitomi Co. Rubber trees shed leaves and latex output slows during wintering, the low-production season that normally begins in Thailand’s main growing areas in February.

Thai Output

Benchmark Thai rubber prices increased as buyers accelerated purchases on concern that the El Nino weather pattern may lower local production and boost prices, the Rubber Research Institute of Thailand said on its Web site today.

The price of unsmoked sheets gained 0.3 percent to 99.55 baht ($3) per kilogram. Ribbed smoked sheets added 0.3 percent to 103.12 baht a kilogram, according to the organization.

“Lower production in Thailand will drive prices further next week,” said Chaiwat. “We may see continued demand from China when the Shanghai market resumes next week but the demand growth may slow as some companies built up stock before holidays.”

The rubber market in Shanghai is closed this week for the Lunar New Year holidays.

Source: Bloomberg