TOKYO, Jan 28 (Reuters) – Key Tokyo rubber futures fell 2.4
percent on Wednesday as traders pocketed profits from a rally the
previous day and factored in a halt in the dollar’s advance
against the yen.

 * The key Tokyo Commodity Exchange rubber contract for July
delivery <0#JRU:> fell to an intraday low of 143.4 yen per kg,
down 5.8 yen or 3.9 percent, before closing at 145.7 yen.

 * The contract, which was launched on Tuesday, closed up 7.6
percent on its debut to touch a one-week high for any TOCOM
benchmark as the dollar gained ground against the yen and propped
up yen-based futures prices.

 * The dollar firmed 0.3 percent from late U.S. trading on
Tuesday to 89.29 yen <JPY=>, but was off a week-high hit the
previous day of above 90 yen. [USD/]

 * The TOCOM market has mostly hovered below 150 yen since the
start of the year.

 * A Tokyo-based analyst said the TOCOM rubber market has hit
bottom, although it has yet to find the incentive to move higher.

 * He said news of export cuts by the world's top rubber
producers was helping to support prices, but the strength was
lacking for them to move higher.

 * "We need news about demand recovering for prices to climb,
but at the moment there is none," he said.

 * He added that investment funds were still shy about
returning in a major way to commodities, and that when they did
return gold would be the first to benefit.

 * U.S. crude CLc1 firmed 1 percent on Wednesday from a 9
percent fall the previous day as worries over demand due to the
faltering global economy eased. [O/R]

 * India's state-run Rubber Board on Wednesday revised down
the country's rubber consumption to 862,000 tonnes from 899,000
tonnes in fiscal 2008/09 as tyre makers are cutting consumption
in response to lower demand. [ID:nBMB004408]

 * In the auto industry, Britain pledged on Tuesday to
guarantee up to 2.3 billion pounds ($3.25 billion) of loans to
help its ailing car industry cope with a slump in demand that has
cost thousands of jobs. [IDnLR230021]

 * The physical market is expected to remain quiet for most of
the week as China, the largest rubber consumer, marks the Lunar
New Year holiday.

 * The world's top three rubber producing countries --
Thailand, Indonesia and Malaysia -- have started to cut
first-quarter exports in a bid to prop up prices, but slack
demand due to the global recession is likely to limit a price
recovery.

 PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH TUESDAY

 Grade                                Price        Change

 Thai RSS3 (Feb)                     $1.52/kg      unchanged

 Thai RSS3 (Mar)                     $1.52/kg      unchanged

 Thai STR20 (Feb)                    $1.46/kg      unchanged

 Thai STR20 (Mar)                    $1.46/kg      unchanged

 Malaysia SMR20 (Feb)                $1.45/kg      N/A

 Malaysia SMR20 (Mar)                $1.45/kg      N/A

 Indonesia SIR20 (Feb)               $0.63/lb      -$0.04

 Indonesia SIR20 (Mar)               $0.63/lb      -$0.04

 Thai USS3                           46 baht/kg    unchanged

 Thai 60-percent latex (drums, Feb)  $1,150/tonne  unchanged

 Thai 60-percent latex (bulk, Feb)   $1,050/tonne  unchanged

Source:  Reuters

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