TOKYO, Sept 22 (Reuters) – Tokyo rubber futures closed up
more than 1 percent at a one-week high on Monday as crude oil’s
massive gains spurred short-covering after investment funds cut
positions last week amid a financial market maelstrom.
* The key Tokyo Commodity Exchange rubber contract for
February 2009 delivery <0#JRU:> closed up 4.7 yen, or 1.6
percent, at 296.6 yen per kg, down a touch from the intraday peak
of 298 yen, the highest level since Sept 12.
* The technical trend improved after the contract broke
through the five-day moving average of about 289.1 yen.
* It also briefly moved above the 10-day average of 297.2
yen, which was closely followed by traders.
* Traders were also watching if the key contract could fill
in a chart gap to 300.0 yen created when it dropped sharply on
Sept. 16.
* TOCOM rubber at one point lost about 5 percent last week as
U.S. financial turmoil rocked global markets, prompting investors
to shift out of risk assets, including rubber.
* TOCOM rubber’s open interest, or the number of contracts
outstanding, fell to 35,429 contracts as of Friday, down about 12
percent for the week.
* Physical rubber prices were gaining support amid lingering
concerns over supplies, while there was demand from China and the
Middle East, a trader in Thailand’s Hat Yai said.

PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH FRIDAY
Grade Price Change
Thai RSS3 (Oct) $2.87/kg +$0.02
Thai RSS3 (Nov) $2.87/kg +$0.02
Thai STR20 (Oct) $2.87/kg +$0.02
Thai STR20 (Nov) $2.87/kg +$0.02
Malaysia SMR20 (Oct) $2.84/kg +$0.04
Malaysia SMR20 (Nov) $2.84/kg +$0.04
Indonesia SIR20 (Oct) $1.27/lb +$0.01
Indonesia SIR20 (Nov) $1.27/lb +$0.01
Thai USS3 92 baht/kg +2 bahts
Thai 60-percent latex (drums, Oct) $1,990/tonne unchanged
Thai 60-percent latex (bulk, Oct) $1,850/tonne unchanged

Source:  Reuters

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