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BANGKOK, Nov 5 (Reuters) – The key Tokyo rubber futures
contract ended 6.3 percent lower in volatile trade on Wednesday,
shedding early gains due to stop-loss selling fuelled by a
reversal in oil prices.
* The benchmark rubber contract on the Tokyo Commodity
Exchange <0#JRU:> for April delivery fell 12.2 yen, or 6.3
percent, to settle at 181.4 yen ($1.83) per kg.
The benchmark turned round after an early 7.9 percent gain as
speculators liquidated contracts to avoid risks after seeing oil
prices fall.
* Oil fell more than 3 percent towards $68 a barrel,
reversing part of the previous day’s surge after Democrat Barack
Obama’s victory in the U.S. presidential election gave a boost to
the dollar.
* Rubber prices often move in line with oil prices as both
markets are sensitive to demand from the automobile sector.
* On the physical front, rubber prices rose in line with
TOCOM, but trading was not busy, with buyers generally waiting to
buy when prices dip, traders said.
PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH TUESDAY
Grade Price Change
Thai RSS3 (Dec) $2.00/kg +$0.05
Thai RSS3 (Jan) $2.00/kg +$0.05
Thai STR20 (Dec) $1.95/kg +$0.05
Thai STR20 (Jan) $1.95/kg +$0.05
Malaysia SMR20 (Dec) $1.95/kg +$0.05
Malaysia SMR20 (Jan) $1.95/kg +$0.05
Indonesia SIR20 (Dec) $0.87/lb +$0.02
Indonesia SIR20 (Jan) $0.87/lb +$0.02
Thai USS3 61 baht/kg + 1 baht
Thai 60-percent latex (drums, Dec) $1,550/tonne unchanged
Thai 60-percent latex (bulk, Dec) $1,450/tonne +$50
($1=34.88 baht)
($1=99.05 YEN)
Source: Reuters