BANGKOK, Oct 9 (Reuters) – Tokyo rubber futures rose modestly
on Thursday on short-covering after prices fell near to a
psychological level of 200 yen, but weaker oil prices limited the
rises.
* The benchmark Tokyo Commodity Exchange rubber contract for
March delivery <0#JRU:> rose 1.5 yen, or 0.7 percent, to settle
at 206.9 yen ($2.05) per kg.
* On Wednesday the March contract fell by the daily 16-yen
limit to close at 205.4 yen, the lowest for any benchmark since
December 2006.
* But the bounce could be technical, given uncertainty over
demand for auto tyres, which are made from natural and synthetic
rubber, traders said.
* Underlining worries over global demand, oil prices stayed
weak. U.S. crude futures fell more than $1 to trade below $88 a
barrel in electronic trade on Thursday. [O/R]
* Weaker oil prices usually encourage the use of natural
rubber as it makes synthetic rubber, a petrochemical product,
expensive.
* Auto industry research firm Global Insight said on
Wednesday that U.S. auto sales would fall further in 2009 from
this year’s depressed levels as the escalating credit crisis hurt
consumer confidence. [ID:nN0850262]
* Yokohama Rubber Co <5101.T> may delay a planned output
expansion in China by a few months, the president of Japan’s
third-largest tyre maker said on Wednesday, as it braces for a
further slowdown in demand and a potential supply glut.
[ID:nT215578]
* The dollar was trading at around 100 yen , above a
six-month low of 98.60 yen hit the previous day. [USD/]
* Physical rubber prices rose slightly on Thursday, tracking
gains on TOCOM, but traders said the market outlook was still
weak, weighed down by fears over falling demand amid the global
financial crisis.

PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH WEDNESDAY
Grade Price Change
Thai RSS3 (Nov) $2.30/kg +$0.10
Thai RSS3 (Dec) $2.30/kg +$0.10
Thai STR20 (Nov) $2.30/kg +$0.10
Thai STR20 (Dec) $2.30/kg +$0.10
Malaysia SMR20 (Nov) $2.30/kg +$0.10
Malaysia SMR20 (Dec) $2.30/kg +$0.10
Indonesia SIR20 (Nov) $0.98/lb unchanged
Indonesia SIR20 (Dec) $0.98/lb unchanged
Thai USS3 69 baht/kg unchanged
Thai 60-percent latex (drums, Nov) $1,500/tonne -$90
Thai 60-percent latex (bulk, Nov) $1,400/tonne -$50
($1=34.41 Baht)
($1=101.19 YEN)

Source:  Reuters

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