TOKYO, Feb 17 (Reuters) – Key Tokyo rubber futures closed
down a touch on Tuesday, caught in a narrow range as traders took
their cue from sluggish oil, which has fallen this week on
concerns about poor demand due to the global economic crisis.
* The key Tokyo Commodity Exchange rubber contract for July
delivery <0#JRU:> closed at 143.2 yen per kg, down 0.4 yen, after
moving between 142.1 yen and 145.7 yen.
* Oil prices remained below $37 a barrel as the market
was dragged down by worries about declining global oil demand.
[O/R]
* The dollar rose 0.7 percent against the yen, supported by
risk aversion due to recession worries. [USD/]
* “Investors and traders lack incentives to push the market
higher, even when they feel the floor is solid,” said a trader at
a Japanese commodity brokerage.
* “Investor appetite has been chilled, given the further
deterioration in the global economy. Sluggish oil prices reflect
concerns about demand while gold’s strong performance indicates
deepening worries about the economy and financial turmoil,” he
said.
* Prices may be supported by expectations that stimulus
measures announced by governments around the world will
eventually produce positive effects, but given a time lag
investors will be wary of chasing up prices, traders said.
* Traders expect the key rubber futures contract to trade
between 140 and 150 yen for a while.
* A meeting of the world’s top rubber-producing countries
planned for February in Kuala Lumpur to look at ways of
supporting prices has been put back to March, a senior industry
official said on Tuesday. [ID:nBKK222950]
* Asian physical rubber prices eased on Tuesday, pulled lower
by the sluggish futures market, but sentiment was solid due to
continued buying by China, the world’s top rubber consumer.

PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH MONDAY
Grade Price Change
Thai RSS3 (Mar) $1.50/kg -$0.04
Thai RSS3 (Apr) $1.50/kg -$0.04
Thai STR20 (Mar) $1.40/kg -$0.02
Thai STR20 (Apr) $1.40/kg -$0.02
Malaysia SMR20 (Mar) $1.40/kg -$0.02
Malaysia SMR20 (Apr) $1.40/kg -$0.02
Indonesia SIR20 (Mar) $0.60/lb -$0.01
Indonesia SIR20 (Apr) $0.60/lb -$0.01
Thai USS3 47 baht/kg -4 baht
Thai 60-percent latex (drums, Mar) $1,270/tonne -$60
Thai 60-percent latex (bulk, Mar) $1,150/tonne -$50
** NOTE – The prices quoted above are offer prices collected
from traders in Thailand, Indonesia and Malaysia. They are not
official prices quoted by state-run rubber agencies in those
countries.

Source: Reuters

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