TOKYO, Jan 21 (Reuters) – Key Tokyo rubber futures fell on
Wednesday, extending losses into a second session as a drop in
oil prices weighed on market sentiment while investors took
profits from recent gains.
* The benchmark Tokyo Commodity Exchange rubber contract for
June 2009 delivery <0#JRU:> ended down 8 yen at 142.0 yen per
kg, down 5.3 percent from the previous close.
* Nearby months, which were firmer earlier in the day, also
eased later. Analysts said the nearby months were supported as
traders kept long positions open, aiming to take physical
delivery at the January contract’s expiry on Jan. 26.
* “Speculators who want to take advantage of the strong yen
cannot become fully bearish because nearby months remain firm
ahead of the January contract’s expiry,” said a manager at a
Tokyo-based commodity brokerage.
* The selling across the board was also prompted by
investors taking profits after the market had risen above the
psychological 150 yen mark earlier in the week, partly on
expectations the new U.S. administration would bring effective
measures to prop up the U.S. economy, a Tokyo-based asset
manager said.
* Barack Obama laid out few new details on how his
administration will tackle the banking crisis and flagging
economy in his inauguration speech on Tuesday.
* “Now that the event is over, investors took profits as the
market has kept a firm tone recently,” he said, adding that once
such selling subsided, the market was likely to test its upside.
* The TOCOM market saw a limited downside on caution over
more rubber export cuts ahead of a February meeting of top
producing countries. The approach of the wintering dry season in
Asian producing countries is another supportive factor.
* The top three rubber-producing countries are prepared to
cut exports by up to 20 percent this year, a Malaysian minister
said on Tuesday. Ministers from Thailand, Indonesia and
Malayasia are to meet in Malaysia in February. [ID:nKLR360139]
* The Thai government will buy rubber for its stockpiles and
increase planned corn and crude palm oil purchases to shore up
prices as part of a package to support farmers and help
stimulate the economy, Deputy Spokesman Puttipong Punnakan said
on Tuesday. [ID:nBKK357497]
* U.S. crude futures fell below $41 a barrel on
Wednesday, as further evidence emerged of a deepening global
slowdown that is crushing demand for fuel. [O/R]

PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH TUESDAY
Grade Price Change
Thai RSS3 (Feb) $1.57/kg +$0.02
Thai RSS3 (Mar) $1.57/kg +$0.02
Thai STR20 (Feb) $1.50/kg +$0.04
Thai STR20 (Mar) $1.50/kg +$0.04
Malaysia SMR20 (Feb) $1.50/kg +$0.04
Malaysia SMR20 (Mar) $1.50/kg +$0.04
Indonesia SIR20 (Feb) $0.67/lb +$0.01
Indonesia SIR20 (Mar) $0.67/lb +$0.01
Thai USS3 49 baht/kg +1 baht
Thai 60-percent latex (drums, Feb) $1,250/tonne +$30
Thai 60-percent latex (bulk, Feb) $1,150/tonne +$50

Source:  Reuters

Comments are closed.