BANGKOK, Oct (Reuters) – Tokyo rubber futures tumbled to the
lowest level since September 2005 on Wednesday on fears of weaker
demand caused by economic recession.
* Falls on stock markets and weaker oil prices added to the
pressure on rubber prices.
* The benchmark rubber contract on the Tokyo Commodity
Exchange <0#JRU:> for March delivery fell 15 yen, or 7.8 percent,
to settle at 178.0 yen ($1.76) per kg.
At one stage it fell by the 16 yen daily limit to 177.1 yen,
the lowest since September 2005.
* On Tuesday, the March contract briefly rose above the
psychologically key level of 200 yen, mainly on short-covering,
but failed to stay above that level, a factor worsening the
technical chart outlook.
* Overshadowing the TOCOM market, Japan’s benchmark Nikkei
share average <.N225> edged up 1.06 percent on Wednesday after
slipping as low as 1.44 percent in early trade.
* Oil prices stayed below $78 a barrel after falling more
than 3 percent in New York on Tuesday on concerns the global
economy could slip into recession. [O/R]
* Dealers said they expected TOCOM prices to fall further
with 185 yen was seen as a strong resistance.
* 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 downtrend in prices. [ID:nBKK397945].
* In the physical market, rubber prices fell further, with
Thai traders keen to sell despite thin demand.
Physical trade remained under pressure that Chinese buyers
have defaulted on more than 10,000 tonnes of rubber from
Thailand, Indonesia and Malaysia after prices fell more than 30
percent.

PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH TUESDAY
Grade Price Change
Thai RSS3 (Nov) $1.83/kg -$0.02
Thai RSS3 (Dec) $1.83/kg -$0.02
Thai STR20 (Nov) $1.82/kg -$0.03
Thai STR20 (Dec) $1.82/kg -$0.03
Malaysia SMR20 (Nov) $1.85/kg unchanged
Malaysia SMR20 (Dec) $1.85/kg unchanged
Indonesia SIR20 (Nov) $0.84/lb -$0.02
Indonesia SIR20 (Dec) $0.84/lb -$0.02
Thai USS3 55 baht/kg -2 baht
Thai 60-percent latex (drums, Nov) $1,300/tonne -$50
Thai 60-percent latex (bulk, Nov) $1,200/tonne unchanged
($1=34.10 Baht)
($1=101.29 Yen)

Source:  Reuters

Comments are closed.