[Dow Jones] Tocom RSS3 rubber futures settle higher as investors take leads from tight supply in physical market, steady crude. “Wintering in southern provinces of Thailand has prompted some investors to set up more long positions, but volume remains thin,” says executive at Japan-based commodities brokerage; adds crude oil above $74.50/bbl also supports prices. Markets in Singapore, China, Malaysia closed for public holiday. Most traders expect rubber prices to test Y290/kg this week. Benchmark Tocom July contract settles Y2.8 higher at Y286.9/kg, close to intraday high of Y287.2/kg. (SAM)

Source:  Dow Jones

[Dow Jones] Physical prices of Thai USS3 rubber higher at THB96.48-THB96.67 vs THB96.26-THB96.27 yesterday on limited availability due to wintering season. Total market arrivals again below 100 tons. Outside central markets, factories even paying above THB98/kg. “Market arrivals are limited and some dealers are also holding back stock in anticipation of a further rise in prices,” says trader in Hat Yai. Total quantity sold in three central markets of Thailand estimated at 91 tons vs 70 tons yesterday: 37 tons in Hat Yai, 12 tons in Surat Thani, 42 tons in Chandee. (SAM)

Source:  Dow Jones

Rubber Drops, Snapping 3-Day Rally, as Chinese Demand May Slow
Share Business ExchangeTwitterFacebook| Email | Print | A A A By Supunnabul Suwannakij and Aya Takada

Feb. 15 (Bloomberg) — Rubber dropped for the first time in four days on concern China’s attempt to cool its economic expansion may curb demand for the commodity used in tires.

Futures in Tokyo fell as much as 1.1 percent to 282 yen per kilogram ($3,127 a metric ton) after the price advanced 6.4 percent last week. U.S. stocks and commodities fell Friday after China unexpectedly increased bank reserve requirements for lenders, prompting speculation efforts to curb growth there will dent demand for commodities.

“Investors are worried that the China tightening would lower demand for tires and may affect the pace of global economic recovery,” Chaiwat Muenmee, analyst at DS Futures Co. Ltd., said by phone from Bangkok.

Rubber for July delivery declined as much as 3.2 yen, the largest intra-day fall since Feb. 5. The contract settled down 0.4 percent at 284.1 yen.

The People’s Bank of China said on its Web site Feb. 12 that the reserve requirement for banks will increase 50 basis points effective Feb. 25. China’s policy makers are aiming to avert asset bubbles and restrain inflation after flooding the economy with money last year to drive a recovery from the first global recession since World War II.

Oil traded near $74 a barrel after declining Friday as China ordered banks to set aside more deposits as reserves for the second time in a month.

“Some players are cashing in for profit amid thin trading as markets close for Chinese New Year,” Rewat Yenchai, an analyst at AGROW Enterprise Ltd., said by phone from Bangkok.

The Shanghai Futures Exchange is closed this week for the Lunar New Year holidays.

In the cash market, benchmark Thai rubber prices advanced as rubber processing factories accelerate purchases on expectations that supply will decline during wintering, when rubber trees shed leaves and latex production slows, the Rubber Research Institute of Thailand said on its Web site today.

The price of unsmoked sheets gained 0.2 percent to 96.27 baht ($2.90) per kilogram. Ribbed smoked sheets added 0.1 percent to 99.51 baht a kilogram, according to the organization.

Source: Bloomberg

BANGKOK, Feb 12 (Reuters) – Tokyo rubber futures jumped 3
percent on Friday, supported by firm oil and rising shares
prices, dealers said.
* The benchmark rubber contract on the Tokyo Commodity
Exchange <0#JRU:> for July delivery rose 8.7 yen, or 3.1 percent,
to settle at 285.2 yen ($3.18) per kg.
* U.S. crude futures hovered above $75 a barrel on Friday,
holding on to most of the previous day’s gains as traders awaited
a government report on U.S. crude stocks, due out later in the
day, for clues to demand. [ID:nTOE61B00D]
* Higher oil prices make an alternative petrochemical
synthetic rubber expensive and usually encourage tyremakers to
switch to natural rubber.
* Japan’s Nikkei average rose 1.3 percent on Friday, with
investors hunting bargains in exporters and other shares after a
pledge by European leaders to support debt-laden Greece eased
fears of a broader euro zone crisis. [ID:nTOE61B04G]
* Dealers said TOCOM rubber gained support from rising oil
and share prices and was likely to rise further next week. Prices
could finish above the key resistance of 285 yen per kg.
($1=89.68 Yen)

Source: Reuters

BANGKOK, Feb 10 (Reuters) – Tokyo rubber futures rose further
on Wednesday, supported by a recovery in stock markets and
limited supply in the physical market, dealers said.
* The benchmark rubber contract on the Tokyo Commodity
Exchange for July delivery <0#JRU:> rose 6.3 yen to settle at
276.5 yen ($3.09) per kg.
* TOCOM rubber rebounded from its lowest in nearly two months
on Monday as concerns about global economic stability subsided,
dealers said.
* Japan’s Nikkei stock average <.N225> was up 1.1 percent.
[.T]
* The Dow posted its largest one-day percentage gain in three
months on Tuesday. [.N]
* Technical sentiment on rubber futures improved after prices
stayed above key resistance at 270 yen per kg, they said.
* Limited supply on the physical market provided additional
support as rubber trees in some parts of Thailand, the world’s
biggest exporter, shed leaves and gradually stopped producing
latex.
($1=89.62 Yen)

Source: Reuters