This entry was posted on Wednesday, November 19th, 2008 at 6:55 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, Nov 19 (Reuters) – Tokyo rubber futures fell to a three-week low on Wednesday, dented by a rise in the yen versus the dollar, while investors mostly sat on the sidelines on fears of a further downturn in other financial markets.
* The key Tokyo Commodity Exchange rubber contract for April delivery <0#JRU:> stood at 164.0 yen per kg as of 0346 GMT, down 4.5 yen or 2.7 percent from the previous close.
* It earlier fell as low as 163.6 yen, the lowest for any benchmark since Oct. 28.
* Investors are reluctant to buy the industrial commodity unless other risky assets such as stocks hit a floor and start showing signs of a recovery, traders said.
* Tokyo’s benchmark Nikkei share average .N225 lost 2.1 percent despite gains overnight in U.S. shares. [.N]
* The yen rose against the dollar and euro on Wednesday as investors continued to fret over a deepening global recession and sought safety in the Japanese currency, while Asian shares tumbled despite a rally on Wall Street. [USD/]
* The dollar fell 0.5 percent from late New York trade to 96.50 yen <JPY=>. A higher yen deflates yen-based commodity futures prices.
* U.S. crude oil futures edged up on Wednesday ahead of data expected to show U.S. crude stocks rose last week, another sign that the global economic slump is trimming fuel demand. [O/R]
* TOCOM rubber futures prices are sounding out a floor after hitting a three-year trough of 153.4 yen in late October, pressured by the global economic crisis and bleak news about the auto industry. Physical rubber prices are being underpinned by continued tight supply due to rains in the main producing areas in Thailand, traders said.
PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH TUESDAY
Grade Price Change
Thai RSS3 (Dec) $1.80/kg unchanged
Thai RSS3 (Jan) $1.80/kg unchanged
Thai STR20 (Dec) $1.80/kg +$0.05
Thai STR20 (Jan) $1.80/kg +$0.05
Malaysia SMR20 (Dec) $1.75/kg unchanged
Malaysia SMR20 (Jan) $1.75/kg unchanged
Indonesia SIR20 (Dec) $0.80/lb +$0.05
Indonesia SIR20 (Jan) $0.80/lb +$0.05
Thai USS3 54 baht/kg – 2 baht
Thai 60-percent latex (drums, Dec) $1,300/tonne -$150
Thai 60-percent latex (bulk, Dec) $1,200/tonne -$100
Source: Reuters