BANGKOK, Oct 14 (Reuters) – Tokyo rubber futures ended
slightly higher in volatile trade on Tuesday as rebounding stock
markets and hopes for an easing of the credit crisis spurred
short-covering.
* But gains were limited due to profit-taking and selling
that set in after prices failed to stay above the psychological
level of 200 yen, dealers said.
* The benchmark rubber contract on the Tokyo Commodity
Exchange for March delivery <0#JRU:> rose 2.1 yen, or 1 percent,
to settle at 193.1 yen ($1.89) per kg.
The benchmark rose to an intra-day high of 205.4 yen in early
trade on the back of short-covering, before falling as low as
188.5 yen, the lowest since November 2006.
* Japan’s benchmark Nikkei share average <.N225> soared more
than 14 percent after Wall Street rallied on Monday following
pledges by the U.S. and other governments to pour cash into
struggling banks and restore confidence in the global financial
system. [.T]
* “TOCOM sentiment was not so good when prices failed to
break above 200 yen and that caused selling,” one dealer said.
* Underlining hopes over global demand, oil prices gained
ground. U.S. crude futures rose more than $2 to $83.23 a
barrel on the Globex electronic trading platform on Tuesday.
[O/R]
* In the physical rubber market, steep falls in prices had
stoked fears of defaults on shipments. [ID:nBKK217789]
* Thai RSS3 grade, which is often used as a benchmark for
physical prices, was quoted at $2 per kg, down from $2.4 last
week and $2.98 a month ago. [ID:nSP347520]
* The world’s top three rubber-producing countries —
Thailand, Indonesia and Malaysia — are scheduled to hold a
two-day meeting from Thursday in Bangkok in a bid to control
output and reverse the drop in prices. [ID:nBKK397945]

PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH FRIDAY
Grade Price Change
Thai RSS3 (Nov) $1.85/kg -$0.15
Thai RSS3 (Dec) $1.85/kg -$0.15
Thai STR20 (Nov) $1.85/kg -$0.15
Thai STR20 (Dec) $1.85/kg -$0.15
Malaysia SMR20 (Nov) $1.85/kg -$0.15
Malaysia SMR20 (Dec) $1.85/kg -$0.15
Indonesia SIR20 (Nov) $0.86/lb -$0.08
Indonesia SIR20 (Dec) $0.86/lb -$0.08
Thai USS3 57 baht/kg -8 baht
Thai 60-percent latex (drums, Nov) $1,350/tonne -$100
Thai 60-percent latex (bulk, Nov) $1,200/tonne -$100
($1=34.09 Baht)
($1=102.43 Yen)
Source:  Reuters

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