SINGAPORE, Oct 31 (Reuters) – Tokyo rubber futures ended 3.9
percent lower on Friday as a firm yen and a sell-off in other
commodities prompted investors to lock in profits after a two-day
rally.
* News that the world’s main producing countries planned to
cut 215,000 tonnes of output next year had little impact on the
market, which has lost nearly half of its value since hitting a
28-year peak above 350 yen in June.
* The benchmark rubber contract on the Tokyo Commodity
Exchange <0#JRU:> for April delivery ended 7.4 yen per kg lower
at 182.5 yen ($1.88), having hit an intraday low of 174.7 yen on
the back of declines in other commodities and weaker equities.
* The price of copper, seen as a key gauge of real economic
activity, tumbled nearly 6 percent on fears of falling demand.
The Reuters-Jeffries CRB Index <.CRB>, a global benchmark of 19
commodities, fell around 23 percent in October so far, also set
for its largest monthly decline ever.
* Thailand, Indonesia and Malaysia have agreed to cut their
total output by 215,000 tonnes next year by cutting down and
replanting up to 160,000 hectares of rubber next year to trim
supply in the near term. [ID:nBKK387168]
* Earlier this week, the TOCOM rubber market took a hit as
investors fled riskier assets, sending rubber down to 153.4 yen,
the lowest level since July 2005. A U.S. interest rate cut calmed
investors’ nerves, albeit briefly.
* The Nikkei average slid 5 percent on Friday, capping its
worst month ever, as investors dumped stocks at the last minute
on caution before a three-day weekend, with little impact felt
from a rate cut by the Bank of Japan. [.T]
* Slowing economies around the globe and the credit crisis
have caused big car industry companies to slash full-year profit
targets, warn of job losses and push for speedy government
handouts. On Thursday, Japan’s Mazda Motor Corp <7261.T> and
Mitsubishi Motors Corp <7211.T> lowered their profit forecasts.
[ID:nLU0100746]
* In the physical market, rubber was quoted lower in thin
trade on Friday, with buyers bargaining for lower prices while
producers were reluctant to sell at cheap prices.
* Indonesia’s tyre grade SIR20 was traded late on T0hursday
at 82 U.S. cents/pound ($1.80 a kg) FOB Belawan and Surabaya for
December shipment.

PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH THURSDAY
Grade Price Change
Thai RSS3 (Dec) $1.85/kg -$0.02
Thai RSS3 (Jan) $1.85/kg -$0.02
Thai STR20 (Dec) $1.83/kg -$0.02
Thai STR20 (Jan) $1.83/kg -$0.02
Malaysia SMR20 (Dec) $1.85/kg -$0.02
Malaysia SMR20 (Jan) $1.85/kg -$0.02
Indonesia SIR20 (Dec) $0.80/lb -$0.03
Indonesia SIR20 (Jan) $0.80/lb -$0.03
Thai USS3 57 baht/kg unchanged
Thai 60-percent latex (drums, Dec) $1,450/tonne +$50
Thai 60-percent latex (bulk, Dec) $1,350/tonne +$50
($1=35.02 baht)
($1=97.21 Yen)

Source:  Reuters

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