[Dow Jones] Physical prices of Thai USS3 rubber rise to THB104.58-THB106.65/kg vs THB103.62-THB104.49/kg Friday, setting new all-time high record, as futures extend gains over last week, physical market remains tight with wintering, drought. Outside central markets, some factories even paying THB107.5/kg. “Factories are trying to stock up before prices go up even further,” says trader in southern Thailand. Total quantity sold in three central markets of Thailand estimated at 53.7 tons vs 37.6 tons Friday: 16.4 tons in Hat Yai, 0.3 tons in Surat Thani, 37 tons in Chandee.

Source: Dow Jones

March 26 (Bloomberg) — Rubber jumped to the highest price since September 2008 after an Indonesian producers’ group said that output may decline this year.

Futures in Tokyo rose as much as 2.9 percent, extending yesterday’s 3.3 percent gain after the Rubber Association of Indonesia said on March 24 that output in the second-largest producer may drop to 2 million metric tons this year, from 2.4 million tons in 2009.

“Given Indonesia’s lower output forecast earlier this week, it’s hard to bet on a price decline,” Shuji Sugata, research manager at Mitsubishi Corp. Futures Ltd. in Tokyo, said today by phone. The forecast “sent futures in Shanghai and Tokyo higher yesterday” amid increased demand for the commodity used in tires, especially from China, he said.

Rubber for August delivery jumped 2.9 percent on the Tokyo Commodity Exchange to 306.1 yen, the highest closing price since Sept. 9, 2008. The most-active contract climbed 5.9 percent this week, the first weekly gain in four.

Output from Indonesia may slump this year if unfavorable weather persists into the second half after rains disrupted first-quarter tapping, Asril Sutan Amir, chairman of the Indonesian industry group, said on March 24.

In the cash market, shippers in Thailand, the world’s largest producer and exporter, offered RSS-3 grade rubber for May shipment at $3.32 a kilogram, from $3.30 yesterday, according to Takaki Shigemoto, an analyst at research and investment company JSC Corp.

Production declines in Thailand from February to April, when rubber trees shed leaves and latex production slows during a period known as wintering.

Rubber for September delivery advanced for a third day on the Shanghai Futures Exchange, settled 0.7 percent higher at 24,855 yuan ($3,641) a ton after touching 25,025 yuan, the highest since March 1.

Source: Bloomberg

[Dow Jones] RSS3 rubber on Agricultural Futures Exchange of Thailand settles higher, on robust supply-demand fundamentals amid wintering season. Fears that China has overstocked on rubber also easing, said trader in Thailand. Deliverable rubber stocks in Shanghai Future Exchange warehouses down 25% on week. AFET rubber expected to continue tracking high prices. Benchmark AFET October contract settles THB0.60 higher at THB107.3/kg, near intraday high of THB107.9/kg.

Source: Dow Jones

[Dow Jones] Asian physical rubber prices mostly up with Thai RSS3 offer prices sharply higher; one producer offering as high as $3,500/ton, FOB, for May delivery–says pricing at cost; another large exporter says numerous queries for RSS3 but not selling any more for April, May as production already at full capacity. Futures rally, wintering, drought woes in Thailand driving up prices; “Even if we offer higher prices, there”s very little raw material,” says Phuket-based factory executive. Thai STR20 traded around $3,270/ton, by land for May delivery to domestic buyer; seller says foreign bids too low at $3,260-$3,280/ton, FOB. Indonesia”s SIR20 traded at $3,220/ton, FOB, for May delivery. Singapore-based trader says aggressive bidding despite high prices.

Source: Dow Jones

March 25 (Bloomberg) — Rubber surged after an Indonesian producers’ group warned that output may decline this year and a weakening of the Japanese currency raised the appeal of yen- based contracts for the commodity used to make tires.

Futures in Tokyo gained as much as 3.4 percent, matching the high set on March 9. The price peaked this year at 306 yen per kilogram ($3,332 a metric ton) on Jan. 15 on optimism that the global economic recovery will boost demand.

Output from Indonesia, the second-largest producer, may drop to 2 million tons this year from 2.4 million in 2009, the Rubber Association of Indonesia said. The yen fell to a two- month low against the dollar yesterday on speculation the European Union will fail to agree to measures to help Greece tackle its fiscal deficit at a meeting starting today.

“Futures gained because of a weaker yen and declining supply from Asian producers,” Takaki Shigemoto, an analyst at research and investment company JSC Corp. in Tokyo, said today by phone.

Rubber for August delivery gained as much as 9.9 yen to 297.9 yen per kilogram on the Tokyo Commodity Exchange before settling at 297.6 yen.

Output from Indonesia may slump this year if unfavorable weather persists into the second half after rains disrupted first-quarter tapping, Asril Sutan Amir, chairman of the Rubber Association of Indonesia, said in an interview late yesterday.

Malaysian Output

Production last year in Malaysia shrank 20 percent to 860,000 tons as heavy rainfall hurt tapping, Bank Negara Malaysia said yesterday in a report, confirming earlier data.

Malaysian output this year may rebound 17 percent to 1 million tons, Minister for Plantation Industries and Commodities Bernard Dompok said in an e-mail earlier this month.

In the cash market, shippers in Thailand, the world’s largest producer and exporter, offered RSS-3 grade rubber for May shipment at $3.30 a kilogram today, unchanged from yesterday, Shigemoto said. The price increased from $3.27 on March 15 as output declined amid the low production season, he added.

During that period, known as wintering, rubber trees shed their leaves and latex production slows. In Thailand, the season lasts from February to April.

Rubber for September delivery advanced 2.4 percent to settle at 24,230 yuan ($3,549) a ton on the Shanghai Futures Exchange. Earlier, the price gained to 24,780 yuan, the highest level since March 8.

The Japanese currency was at 91.85 per dollar at 4:29 p.m. in Tokyo after falling to 92.40 yesterday, the weakest level since Jan. 12.

Source: Bloomberg