BANGKOK, Dec 8 (Reuters) – Tokyo rubber futures jumped 8.4
percent to end at a one-week high on Monday, reversing early
losses as rebounding oil prices spurred short-covering by
investment funds.
But the main contract failed to stay above the key
psychological level of 120 yen as gains were capped by demand
worries amid bad news in U.S. auto industry, dealers said.
Some said the rise was a technical correction and that rubber
prices would fall again because of the situation in the car
sector.
* The benchmark rubber contract on the Tokyo Commodity
Exchange <0#JRU:> rose 9.1 yen, or 8.4 percent, to settle at
117.7 yen ($1.26) per kg. It had risen as high as 121.4 yen per
kg, the highest since Dec. 1.
* Oil rose 6 percent to over $43 on Monday, reversing part of
last week’s near-record decline as Asian stock markets rose and
Saudi Arabia cut January oil supplies a bit more deeply for a few
Asian refiners.
* White House and congressional negotiators sought on Sunday
to resolve remaining differences over an emergency rescue for the
struggling auto industry, a stark symbol of the deepening U.S.
economic crisis. [ID:nN07462460]
* Global sales at the world’s top premium car makers, BMW and
Mercedes, plunged by a quarter in November and Honda backed out
of Formula One racing as the economic downturn exacted a
mounting toll on car makers. [ID:nL563310]
* The International Rubber Consortium, which groups top
producers Thailand, Indonesia and Malaysia, is due to meet on
Dec. 11 in Indonesia, but physical rubber traders were sceptical
the meeting would come up with much to support prices.
* In the physical market, rubber prices fell despite the rise
on TOCOM, as demand remained thin, traders said.

PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH THURSDAY
Grade Price Change
Thai RSS3 (Jan) $1.15/kg -$0.10
Thai RSS3 (Feb) $1.15/kg -$0.10
Thai STR20 (Jan) $1.12/kg -$0.13
Thai STR20 (Feb) $1.12/kg -$0.13
Malaysia SMR20 (Jan) $1.12/kg -$0.13
Malaysia SMR20 (Feb) $1.12/kg -$0.13
Indonesia SIR20 (Jan) $0.50/lb -$0.05
Indonesia SIR20 (Feb) $0.50/lb -$0.05
Thai USS3 35 baht/kg -2 baht
Thai 60-percent latex (drums, Jan) $1,000/tonne unchanged
Thai 60-percent latex (bulk, Jan) $900/tonne unchanged
($1=35.63 baht)
($1=93.18 Yen)

Source:  Reuters

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