This entry was posted on Wednesday, October 8th, 2008 at 8:46 pm 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.
TOKYO, Oct 8 (Reuters) – Key Tokyo rubber futures closed down by the 16 yen daily limit on Wednesday for the second time this week as more gloomy news about the economy stoked concerns over demand that kept rubber prices near a two-year low.
* The key Tokyo Commodity Exchange rubber contract for March delivery <0#JRU:> closed at 205.4 yen per kg, down 16 yen or about 7.2 percent,
* The dollar’s brief dive to a six-month low of around 99.61 yen , and tumbling crude oil prices also added to the downward pressure on TOCOM rubber.
* “Rubber prices are a reflection of the economic sentiment as well as the real state of the economy … and any rebound now would be purely technical,” a Tokyo-based broker said.
* In the latest news, Toyota Motor Corp <7203.T> may cut its annual profit outlook on sluggish global demand and a firmer yen, a company source said on Wednesday. [ID:nT69616]
* The broker said he would be watching to see if prices can hold above 200 yen, although this level could be breached on fresh news of the deteriorating state of the economy.
* TOCOM rubber has been hurt by an exodus of fund money from commodities, as well as fears that an economic downturn will hit demand for the commodity needed to produce tyres, which have been fuelled by news of falling automobile sales.
* Japan’s Nikkei average plunged 9.4 percent on Wednesday, its biggest drop since the 1987 stock market crash, as growing fears of a global recession led investors to wipe $250 billion off the value of Tokyo shares.
* U.S. light crude futures for November delivery briefly fell $4 to about $86 a barrel on fears that crude oil demand will fall. [O/R]
* Asian physical rubber prices have fallen in response to the plunge in futures prices, while many buyers refrained from trading actively in hopes for a further decline and more market stability.
PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH TUESDAY
Grade Price Change
Thai RSS3 (Nov) $2.20/kg -$0.10
Thai RSS3 (Dec) $2.20/kg -$0.10
Thai STR20 (Nov) $2.20/kg -$0.10
Thai STR20 (Dec) $2.20/kg -$0.10
Malaysia SMR20 (Nov) $2.20/kg -$0.10
Malaysia SMR20 (Dec) $2.20/kg -$0.10
Indonesia SIR20 (Nov) $0.98/lb -$0.02
Indonesia SIR20 (Dec) $0.98/lb -$0.02
Thai USS3 69 baht/kg – 1 baht
Thai 60-percent latex (drums, Nov) $1,590/tonne -$60
Thai 60-percent latex (bulk, Nov) $1,450/tonne -$50
Source: Reuters