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Sept 9: Tokyo rubber down 2.6 pct but supply concern lingers

TOKYO, Sept 9 (Reuters) – Tokyo rubber futures slipped 2.6
percent on Tuesday as widespread selling of commodities,
including a 1 percent fall in oil prices, spurred profit-taking
after rubber’s strong gains the previous session.

* Still, prices were supported due to delays in Thai physical
rubber shipments caused by rail strikes amid anti-government
protests and unseasonable rain in southern Thailand, which also
disrupted tapping.

* “Rubber has been pushed down along with other commodities,
but fundamentally the market is not that bad because we are
seeing fewer supplies since last week due to rain,” said a trader
in the rubber centre of Thailand’s Hat Yai.

* The key rubber contract on the Tokyo Commodity Exchange
<0#JRU:> for February delivery was down 7.9 yen, or 2.6 percent,
at 306.0 yen per kg.

* “There is an important chart point at around 306 yen. A
fall below that would hurt the technical trend and accelerate
selling pressure,” said Jun Nishimuta, analyst at Kanetsu Asset
Management in Tokyo.
The 200-day moving average was seen at 307.0 yen.

* U.S. crude futures fell more than $1 on Tuesday as traders
shed their commodity positions to join the rally in the dollar,
which hit a one-year peak against a basket of other currencies in
Monday’s session. [nSEO276417]

PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH MONDAY
Grade Price Change
Thai RSS3 (Oct) $2.98/kg -$0.02
Thai RSS3 (Nov) $2.98/kg -$0.02
Thai STR20 (Oct) $2.98/kg unchanged
Thai STR20 (Nov) $2.98/kg unchanged
Malaysia SMR20 (Oct) $2.95/kg -$0.03
Malaysia SMR20 (Nov) $2.95/kg -$0.03
Indonesia SIR20 (Oct) $1.31/lb -$0.02
Indonesia SIR20 (Nov) $1.31/lb -$0.02
Thai USS3 95 baht/kg -1 baht
Thai 60-percent latex (drums, Oct) $2,040/tonne -$10
Thai 60-percent latex (bulk, Oct) $1,900/tonne unchanged
(Reporting by Chikafumi Hodo; Editing by Hugh Lawson)
(([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

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« Sept 8: TOCOM rubber rises 1.7 pct, buoyed by firmer oil
Sept 10: Tokyo rubber falls 1.6 pct, but finds support »

This entry was posted on Tuesday, September 9th, 2008 at 7:20 pm and is filed under Rubber News. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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