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TOKYO, Sept 10 (Reuters) – Tokyo rubber futures dropped on Wednesday but held above a three-week low as a rebound in crude oil and growing wariness over supplies in key producing countries spurred short-covering.
* The key Tokyo Commodity Exchange rubber contract for February delivery <0#JRU:> closed 5.0 yen, or 1.6 percent, lower at 301.8 yen per kg. In the morning session, it fell as far as 299.5 yen per kg — the lowest since Aug. 21.
* The market was watching whether it would break below a low of 295.7 yen hit on Aug. 19. A downtrend could accelerate if that level is broken, which may pave the way for the key contract to drop to this year’s low of 266.1 yen reached on March 21.
* “Crude oil prices are mainly driving rubber prices now. Falls in TOCOM prices will be limited as the market is in deep backwardation,” said Shuji Sugata, manager at Mitsubishi Corp Futures and Securities Ltd.
* Solid Asian physical rubber prices, due partly to supply concerns from heavy rain in Thailand and Malaysia as well as the emergence of the dry season in parts of Indonesia, supported TOCOM prices.
* Oil jumped more than $1 to near $105 a barrel, rebounding from a five-month low after OPEC agreed a small but unexpected production cut that some analysts said showed their resolve to keep prices above $100. [O/R]
PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH TUESDAY
Grade Price Change
Thai RSS3 (Oct) $2.98/kg unchanged
Thai RSS3 (Nov) $2.98/kg unchanged
Thai STR20 (Oct) $2.95/kg -$0.03
Thai STR20 (Nov) $2.95/kg -$0.03
Malaysia SMR20 (Oct) $2.95/kg unchanged
Malaysia SMR20 (Nov) $2.95/kg unchanged
Indonesia SIR20 (Oct) $1.31/lb unchanged
Indonesia SIR20 (Nov) $1.31/lb unchanged
Thai USS3 94 baht/kg -1 baht
Thai 60-percent latex (drums, Oct) $2,000/tonne -$40
Thai 60-percent latex (bulk, Oct) $1,850/tonne -$50 (Reporting by Chikafumi Hodo, Editing by Jacqueline Wong)
(([email protected]; +81-3-6441-1855; Reuters Messaging: [email protected])) ** NOTE – The prices quoted above are offer prices collected from traders in Thailand, Indonesia and Malaysia. They are not official prices quoted by state-run rubber agencies in those countries
Source: Reuters