BANGKOK, Nov 4 (Reuters) – The key Tokyo rubber futures
contract rose 6 percent on Tuesday on easing concerns that a
global recession might hit demand, while a weaker yen inflated
yen-based futures prices.
* The benchmark rubber contract on the Tokyo Commodity
Exchange <0#JRU:> for April delivery rose 11.1 yen, or 6 percent,
to settle at 193.6 yen ($1.95) per kg.
Tokyo rubber futures reversed last week’s losses when trading
resumed on Tuesday after Monday’s national holiday.
* The TOCOM rubber market fell last week as investors fled
riskier assets, including commodities, due to concerns about the
global credit crunch, sending rubber as low as 153.4 yen, its
lowest level since July 2005.
* The dollar gained ground ahead of the U.S. presidential
election. By 0835 GMT, it stood around 99.15 yen , having
recovered from a 13-year low below 91 yen last month.
* Japan’s benchmark Nikkei share average <.N225> ended up
6.27 percent. [.T] Higher share prices could push TOCOM to test
the next resistance level at 200 yen, traders said.
* Planned steps to curb rubber production have had little
impact on the TOCOM market.
* The world’s top three rubber-producing countries agreed on
Friday to cut output by 3 percent next year in a bid to shore up
prices hit by dwindling demand and growing fears of a global
recession. [ID:nSP168606]
* Tokyo rubber futures are expected to tumble further in
November because of falling auto sales and fears of a global
economic recession, a Reuters poll showed on Monday.
[ID:nBNK352960]
* On the physical front, rubber prices were higher, tracking
TOCOM, but trading remained thin, traders said.

PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH FRIDAY
Grade Price Change
Thai RSS3 (Dec) $1.95/kg +$0.10
Thai RSS3 (Jan) $1.95/kg +$0.10
Thai STR20 (Dec) $1.90/kg +$0.07
Thai STR20 (Jan) $1.90/kg +$0.07
Malaysia SMR20 (Dec) $1.90/kg +$0.05
Malaysia SMR20 (Jan) $1.90/kg +$0.05
Indonesia SIR20 (Dec) $0.85/lb +$0.05
Indonesia SIR20 (Jan) $0.85/lb +$0.05
Thai USS3 60 baht/kg + 3 baht
Thai 60-percent latex (drums, Dec) $1,550/tonne +$100
Thai 60-percent latex (bulk, Dec) $1,400/tonne +$50
($1=34.96 baht)
($1=99.05 Yen)

Source:  Reuters

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