This entry was posted on Friday, October 31st, 2008 at 8:35 am and is filed under Rubber News. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.
BANGKOK, Oct 30 (Reuters) – Tokyo rubber futures rose by their
16 yen daily limit to a near one-week high on Thursday, supported
by a rally in Japanese shares and a U.S. interest rate cut that
helped ease fears that a global recession would hit rubber
demand.
* The most active April 2009 contract on the Tokyo Commodity
Exchange <0#JRU:> rose 16.0 yen, or 9.2 percent, to settle at
189.9 yen ($1.93), the highest since Oct. 24.
Despite rising nearly 10 percent on Thursday, rubber is down
24 percent so far this month, tracking the trend in global stock
markets which have been under pressure due to recession concerns.
* Earlier this week, the TOCOM rubber market reached its
lowest level since July 2005 as investors abandoned riskier
assets amid heightened credit concerns.
* On Wednesday, the United States and China kicked off what
is likely to be a global round of interest rate cuts, part of a
barrage of measures deployed around the world to fight a deep
economic slowdown. [ID:nLT458286]
* Tokyo’s benchmark Nikkei average <.N225> extended early
gains, rising as much as 9.96 percent on Wednesday.
* Oil was another supportive factor for rubber. U.S. crude
futures jumped more than 2 percent to above $69.50 a
barrel, bolstered by a weaker dollar after the U.S. rate cut. It
slipped lower to $69.04 a barrel at 0842 GMT. [O/R]
* French tyre maker Michelin cut its full year
operating margin target on Wednesday and said the group noted a
sharper drop in demand in European and North American markets.
[ID:nL572480]
* The European Automobile Manufacturers Association said on
Wednesday the industry would suffer a further drop in sales in
the fourth quarter after a 10 percent decline in the third
quarter. [ID:nLT196213]
* On the physical front, rubber prices rose further in line
with TOCOM amid busier trading as tyremakers sought rubber before
prices rose much higher, traders said.
PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH WEDNESDAY
Grade Price Change
Thai RSS3 (Dec) $1.87/kg +$0.07
Thai RSS3 (Jan) $1.87/kg +$0.07
Thai STR20 (Dec) $1.85/kg +$0.05
Thai STR20 (Jan) $1.85/kg +$0.05
Malaysia SMR20 (Dec) $1.87/kg +$0.07
Malaysia SMR20 (Jan) $1.87/kg +$0.07
Indonesia SIR20 (Dec) $0.83/lb +$0.05
Indonesia SIR20 (Jan) $0.83/lb +$0.05
Thai USS3 57 baht/kg unchanged
Thai 60-percent latex (drums, Dec) $1,400/tonne +$100
Thai 60-percent latex (bulk, Dec) $1,300/tonne +$100
($1=34.75 baht)
($1=95.58 YEN)
Source: Reuters