BANGKOK, Dec 9 (Reuters) – Tokyo rubber futures tumbled 10.8
percent on Tuesday as investors remained jittery about demand
from the U.S. auto industry, which is seeking billions of dollars
of government aid to help it survive.
* The rubber contract on the Tokyo Commodity Exchange for May
delivery <0#JRU:> fell 12.7 yen, or 10.8 percent, to settle at
105.0 yen ($1.14) per kg.
* Dealers feel TOCOM could drop below the key psychological
level of 100 yen again if oil prices continue to fall, after
easing to 99.8 yen per kg on Dec. 5, the lowest for a main
contract since August 2002.
* Oil was also a negative factor as the price fell back below
$44 a barrel on Tuesday after a 7 percent jump on Monday, with
the market watching for the U.S. Energy Department’s short-term
outlook, which could point to more oil demand weakness next year.
* The White House reviewed a Democrat plan on Monday to bail
out stricken car makers with up to $15 billion in loans, a move
that would also clear the way for longer-term help if the
industry met certain conditions. [ID:nN07466561]
* Traders are waiting for a Dec. 11 meeting of the
International Rubber Consortium, which groups top producers
Thailand, Indonesia and Malaysia, but few expect the gathering in
Indonesia to produce results that will help support prices.
* In the physical market, rubber prices fell further in thin
trade, weighed down by demand worries and falling TOCOM prices,
traders said.

PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH MONDAY
Grade Price Change
Thai RSS3 (Jan) $1.13/kg -$0.02
Thai RSS3 (Feb) $1.13/kg -$0.02
Thai STR20 (Jan) $1.10/kg -$0.02
Thai STR20 (Feb) $1.10/kg -$0.02
Malaysia SMR20 (Jan) $1.10/kg -$0.02
Malaysia SMR20 (Feb) $1.10/kg -$0.02
Indonesia SIR20 (Jan) $0.50/lb unchanged
Indonesia SIR20 (Feb) $0.50/lb unchanged
Thai USS3 30 baht/kg -5 baht
Thai 60-percent latex (drums, Jan) $900/tonne -$100
Thai 60-percent latex (bulk, Jan) $800/tonne -$100
($1=35.44 baht)
($1=92.49 YEN)

Source:  Reuters

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