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TOKYO, Nov 11 (Reuters) – Key Tokyo rubber futures dropped nearly 6 percent on Tuesday, pressured by sinking crude oil prices, but they recouped some of their losses to finish above 180 yen.
* The Tokyo Commodity Exchange rubber contract for April delivery <0#JRU:> fell to an intraday low of 179.3 yen per kg, down 11.1 yen or 5.8 percent. It closed at 181.8 yen.
* Traders expect TOCOM rubber to trade around 160-200 yen, the range it has been trapped between since mid-October, for the time being.
* “It’s a question of whether investors, led by funds, can feel comfortable and want to return to the market,” a Tokyo trader said.
* A crucial point will be whether TOCOM rubber can manage to remain above 153.4 yen marked in late October, which was the lowest level since July 2005, he said.
* If it manages to stay above that level, hopes for a rally will increase, he said.
* U.S. crude oil futures fell over $2 to sink close to $60 a barrel as a firmer dollar and renewed gloom over the global economy wiped away the brief euphoria that greeted Beijing’s stimulus package.
* Singapore-listed rubber planter and processor GMG Global will double natural rubber production at its Hevecam plantation in southern Cameroon, the company said on Monday. [ID:nLA447922]
* Chinese state oil trader Sinochem bought a 51 percent stake in GMG earlier this year, and the rubber firm wants to boost output to meet what it expects will be strong demand from China.
* Buying of physical rubber by China, the world’s top buyer of the industrial commodity used for tyres, has slowed recently, traders said.
* China’s near $600 billion economic stimulus plan announced Sunday was seen as positive news for the rubber market, but physical traders said more time was needed to gauge the extent of its impact.
PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH MONDAY
Grade Price Change
Thai RSS3 (Dec) $1.90/kg +$0.05
Thai RSS3 (Jan) $1.90/kg +$0.05
Thai STR20 (Dec) $1.85/kg unchanged
Thai STR20 (Jan) $1.85/kg unchanged
Malaysia SMR20 (Dec) $1.85/kg unchanged
Malaysia SMR20 (Jan) $1.85/kg unchanged
Indonesia SIR20 (Dec) $0.84/lb +$0.02
Indonesia SIR20 (Jan) $0.84/lb +$0.02
Thai USS3 60 baht/kg + 1 baht
Thai 60-percent latex (drums, Dec) $1,500/tonne unchanged
Thai 60-percent latex (bulk, Dec) $1,350/tonne unchanged
Source: Reuters