BANGKOK, Oct 17 (Reuters) – Tokyo rubber futures rebounded on
Friday, recovering from the previous day’s losses as a rebound in
oil prices encouraged bargain hunting.
* The outlook for demand remains gloomy given slumping car
sales around the globe. But main producing countries Thailand,
Indonesia and Malaysia are set to announce later in the day
results of their two-day meeting in Bangkok to counter a collapse
in prices. [ID:nJAK371827]
* The benchmark rubber contract on the Tokyo Commodity
Exchange for March delivery <0#JRU:> rose 2.3 yen, or 1.4
percent, to end the morning session at 164.4 yen ($1.63) per kg.
It earlier fell as low as 159.3 yen, the lowest since July
2005.
* U.S. crude oil rose above $72 per barrel, maintaining the
momentum gained late on Wednesday following the late rally in the
U.S. equities markets. [O/R]
* A retreat in the yen against the dollar was also supportive
as it inflates yen-based TOCOM rices. The dollar was nearly flat
against the yen at 101.60 yen, off a low below 100 yen
earlier this week.
* But rubber exporters continued to unwind hedging long
positions in the wake of defaults on shipments by Chinese buyers
recently, limiting the TOCOM market’s rise.
* Talk of more rubber defaults saw physical rubber prices
quoted lower on Friday as buyers waited for cheaper prices,
traders said.

PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH THURSDAY
Grade Price Change
Thai RSS3 (Nov) $1.60/kg -$0.23
Thai RSS3 (Dec) $1.60/kg -$0.23
Thai STR20 (Nov) $1.60/kg -$0.22
Thai STR20 (Dec) $1.60/kg -$0.22
Malaysia SMR20 (Nov) $1.70/kg -$0.15
Malaysia SMR20 (Dec) $1.70/kg -$0.15
Indonesia SIR20 (Nov) $0.70/lb -$0.14
Indonesia SIR20 (Dec) $0.70/lb -$0.14
Thai USS3 45 baht/kg -6 baht
Thai 60-percent latex (drums, Nov) $1,100/tonne -$200
Thai 60-percent latex (bulk, Nov) $1,000/tonne -$200
($1=34.23 Baht)
($1=100.80 YEN)
Source:  Reuters

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