BANGKOK, Dec 16 (Reuters) – Tokyo rubber futures ended
slightly higher on Tuesday in line with recovering oil prices,
but demand worries fuelled by trouble in the car industry capped
the gains.
* The key Tokyo Commodity Exchange rubber contract for May
delivery <0#JRU:> rose 1.7 yen, or 1.5 percent, to settle at
116.0 yen ($1.29) per kg.
* Oil prices steadied, staying near $45 a barrel, bolstered
by expectations that OPEC will agree its largest supply cut ever,
after dropping 4 percent in the previous day.
* Rubber’s fate is closely tied to that of the auto industry
as the commodity’s main use is the production of tyres.
* Toyota Motor Corp <7203.T> is expected to slash its sales
projections for 2009 at a year-end news conference next week,
while providing details on how it plans to cut costs at a time of
dwindling sales and cash flow. [ID:nT171167]
* Ailing U.S. automakers will have to wait days to see how
their rescue shapes up. President George W. Bush told reporters
on Monday that while some funds earmarked to shore up the U.S.
financial industry could be diverted to automakers, no
announcement was imminent. [ID:nN14461208]
* A Reuters poll on Tuesday suggested TOCOM prices could rise
slightly to 120 yen by the end of January, supported by planned
cuts in exports by the leading rubber-producing countries, but in
general the market remains bearish. [nBKK343956]
* On the physical front, rubber prices edged higher as
limited supply and the news on export cuts by the top producers
lent support, traders said.

PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH MONDAY
Grade Price Change
Thai RSS3 (Jan) $1.15/kg +$0.05
Thai RSS3 (Feb) $1.15/kg +$0.05
Thai STR20 (Jan) $1.12/kg +$0.02
Thai STR20 (Feb) $1.12/kg +$0.02
Malaysia SMR20 (Jan) $1.12/kg +$0.02
Malaysia SMR20 (Feb) $1.12/kg +$0.02
Indonesia SIR20 (Jan) $0.50/lb +$0.01
Indonesia SIR20 (Feb) $0.50/lb +$0.01
Thai USS3 32 baht/kg +2 baht
Thai 60-percent latex (drums, Jan) $920/tonne +$20
Thai 60-percent latex (bulk, Jan) $820/tonne +$20
($1=34.83 baht)
($1=90.69 Yen)

Source:  Reuters

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