TOKYO, Feb 26 (Reuters) – Key Tokyo rubber futures rose
nearly 4 percent on Thursday, buoyed by a rally in the Shanghai
market and the yen’s fall to a three-month low versus the dollar.
* Firm oil prices also provided support. Oil was steady above
$42 a barrel, maintaining its momentum from Wednesday after U.S.
data showing a larger-than-expected drop in gasoline stocks.
[O/R]
* The key Tokyo Commodity Exchange rubber contract for August
delivery <0#JRU:> ended up 5.1 yen or 3.7 percent at 142.1 yen
per kg, after rising as high as 142.7 yen, a one-week high for a
benchmark contract.
* The previous benchmark July contract hit a two-month low of
130.4 yen last week amid demand concerns.
* “Tokyo cannot help but catch up with Shanghai as prices
there extended gains,” said Shuji Sugata, a manager in Mitsubishi
Corp Futures and Securities’ research team. “In addition,
external factors are supportive as the yen is weak and oil has
gone beyond $40,” he said.
* In Shanghai, the benchmark May rubber futures contract
<0#SNR:> jumped 3.6 percent to 13,380 yuan per tonne.
* The yen tumbled to a three-month low against the dollar on
Thursday amid concerns about Japan’s economic outlook. [USD/] A
fall in the Japanese currency inflates yen-based prices.
* News on Wednesday that Malaysia and Indonesia would jointly
curb rubber supplies had a limited impact on rubber prices.
Government ministers from the world’s No.2 and No.3 producing
countries said they would further reduce rubber output by a
combined 115,000 tonnes this year by replanting more rubber
trees. [ID:nLP580319]
* Market participants were instead waiting for the outcome of
a March meeting of the International Rubber Consortium (IRCo) of
the world’s top three rubber-producing countries.
* The focus is on how Indonesia can meet the top three rubber
producers’ agreement not to sell rubber below $1.35 per kg, or
$0.60-0.61 per pound.

PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH WEDNESDAY
Grade Price Change
Thai RSS3 (Mar) $1.45/kg +$0.05
Thai RSS3 (Apr) $1.45/kg +$0.05
Thai STR20 (Mar) $1.37/kg +$0.02
Thai STR20 (Apr) $1.37/kg +$0.02
Malaysia SMR20 (Mar) $1.37/kg +$0.02
Malaysia SMR20 (Apr) $1.37/kg +$0.02
Indonesia SIR20 (Mar) $0.56/lb -$0.02
Indonesia SIR20 (Apr) $0.56/lb -$0.02
Thai USS3 46 baht/kg +1 baht
Thai 60-percent latex (drums, Mar) $1,350/tonne +$50
Thai 60-percent latex (bulk, Mar) $1,200/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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