BANGKOK, Oct 10 (Reuters) – Tokyo rubber futures fell by the
16-yen daily limit, or more than 7 percent, to a nearly 2-year
low on Friday as fears of a global recession and weaker demand
triggered heavy sales ahead of a long weekend.
* The benchmark rubber contract on the Tokyo Commodity
Exchange <0#JRU:> for March delivery fell 15.9 yen, or 7.7
percent, to settle at 191.0 yen ($1.93) per kg.
It fell by 16-yen daily limit to an intraday low at 190.9
yen, the lowest since Dec 2006.
* “Players sold contracts heavily after prices fell below 200
yen and I couldn’t figure out what level should be a strong
support because prices fell very sharp and very fast,” one dealer
said.
* TOCOM rubber will be closed on Monday for a holiday and
trading will resume on Tuesday.
* Japan’s crude rubber inventories fell 10 percent to 4,358
tonnes in the 10 days to Sept. 20, hitting another all-time low,
Rubber Trade Association of Japan data showed on Friday.
* But traders said the falling stock did not lend any support
to TOCOM prices as fears of weaker demand amid a recession still
weighed.
“Unless there are signs that the stock market stops falling,
I don’t think rubber prices will hit a floor and come back,” said
Takashi Ogura, a director at Tokyo-based Kanetsu Asset Management
Co.
* Japan’s benchmark Nikkei share average <.N225> tumbled
nearly 10 percent on Friday, in its biggest one-day drop since
the 1987 stock market crash. [.T]
* The dollar hit a six-month low below 98 yen on
Friday. Traders said many players do not believe a G7 meeting
this weekend in Washington could come up with an effective
solution to stabilise financial markets. [USD/]
* A stronger yen against the dollar deflates yen-based
prices, giving another blow to the TOCOM market.
* Underlining worries over global demand, oil prices extended
recent losses. U.S. crude futures fell to a 12-month low
below $84 a barrel on Friday. [O/R]
* Physical rubber prices tumbled in line with TOCOM as buyers
were holding back, waiting to buy at much lower prices, traders
said.

PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH THURSDAY
Grade Price Change
Thai RSS3 (Nov) $2.00/kg -$0.30
Thai RSS3 (Dec) $2.00/kg -$0.30
Thai STR20 (Nov) $2.00/kg -$0.30
Thai STR20 (Dec) $2.00/kg -$0.30
Malaysia SMR20 (Nov) $2.00/kg -$0.30
Malaysia SMR20 (Dec) $2.00/kg -$0.30
Indonesia SIR20 (Nov) $0.94/lb -$0.04
Indonesia SIR20 (Dec) $0.94/lb -$0.04
Thai USS3 65 baht/kg -4 baht
Thai 60-percent latex (drums, Nov) $1,450/tonne -$50
Thai 60-percent latex (bulk, Nov) $1,300/tonne -$100
($1=34.39 Baht)
($1=99.13 Yen)

Source:  Reuters

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