TOKYO, Oct 3 (Reuters) – Key Tokyo rubber futures ended at a 13-month low on Friday, as worries that the global credit crisis will further depress industrial demand briefly dragged down prices by more than 5 percent.
* The key Tokyo Commodity Exchange rubber contract for March delivery <0#JRU:> tumbled to an intraday low of 232.7 yen per kg, down 13.6 yen or 5.5 percent, the lowest level since August 2007. It recouped some of its losses to end the day at 242.3 yen.
* The key contract at one point had lost more than 15 percent since last Friday in volatile trade as U.S. lawmakers debated and voted on a $700 billion bank bailout.
* U.S. House Democratic leaders expressed optimism on Thursday that a revised financial industry rescue bill passed by the Senate will clear the House of Representatives, which earlier rejected the bailout. [ID:nCRISIS]
* Crude oil, platinum and rubber are taking the biggest beating as growing fears about the health of the economy rekindle concerns about demand for these industrial commodities, said Takashi Ogura, a manager at Kanetsu Asset Management.
* “Funds are just not buying in this market,” Ogura said.
* He added, however, that the key contract was unlikely to break below the 200 yen level.
* Oil extended losses on Friday after it dropped more than 4 percent on Thursday as the financial market turmoil stoked concerns about fuel demand and sent investors seeking safety. [O/R]
* The dollar inched down 0.2 percent to 105.10 yen , while it has hovered near a one-year peak against a basket of major currencies as banks and financial institutions scramble to buy the U.S. currency. [USD/]
* “With natural rubber output rising, the global natural rubber deficit narrowed to 8,000 tonnes in the year to May 2008 from 83,000 tonnes in 2007,” the International Rubber Study Group said in a recent report.
“However, given the gloomy outlook for the world economy, a slowdown in consumption may still result in a market surplus later in the year,” it said.
* Physical rubber prices have dropped, reflecting the weakness in the futures market, but activity has been slow with financial markets in many countries in Asia closed due to holidays.

PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH THURSDAY
Grade Price Change
Thai RSS3 (Nov) $2.50/kg -$0.07
Thai RSS3 (Dec) $2.50/kg -$0.07
Thai STR20 (Nov) $2.50/kg -$0.07
Thai STR20 (Dec) $2.50/kg -$0.07
Malaysia SMR20 (Nov) $2.50/kg -$0.23
Malaysia SMR20 (Dec) $2.50/kg -$0.23
Indonesia SIR20 (Nov) $1.12/lb -$0.08
Indonesia SIR20 (Dec) $1.12/lb -$0.08
Thai USS3 78 baht/kg – 2 bahts
Thai 60-percent latex (drums, Nov) $1,790/tonne -$10
Thai 60-percent latex (bulk, Nov) $1,650/tonne unchanged

Source:  Reuters

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