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TOKYO, Feb 5 (Reuters) – Key Tokyo rubber futures closed up nearly 2 percent on Thursday, maintaining momentum on recent buying by China in the physical market and resilience in other commodities prices.
* The key Tokyo Commodity Exchange rubber contract for July delivery <0#JRU:> closed at 140.7 yen per kg, up 2.6 yen or 1.9 percent from the previous close, after moving between 138.6 yen and 141.8 yen.
* The contract had rebounded on Wednesday, partly fuelled by short-covering after hitting a five-week low of 130.9 yen the previous day.
* Gold stayed above $900 an ounce on Thursday, underpinned by economic worries amid a global financial crisis. [GOL/]
* U.S. oil was little changed after settling in New York near $40 a barrel. Oil stayed resilient despite falls in stock markets and a government report showing a larger-than-expected build in U.S. crude inventories. [O/R]
* The dollar was almost flat at 89.34 yen . [USD/]
* “Given that the dollar/yen rate is glued to its recent range, the rubber market is looking for clues from the direction in Shanghai,” said a manager at a Tokyo-based commodities brokerage.
“It’s natural that the Shanghai market came under selling pressure now that it jumped 800 yuan or so in the past two days. Which way it is going after the adjustment is a focus,” the manager said, adding that technical charts suggest a further rally until the benchmark Shanghai contract reaches 14,000 yuan per tonne.
* The key Shanghai May rubber futures contract rose by its 5 percent daily limit to 13,405 yuan per tonne on Wednesday afternoon, amid speculation the Chinese government would buy natural rubber for the state reserves. [ID:nSHA24037]
* In the physical market, prices were little changed as buyers from China were seen as less aggressive than in the past few days, traders said. After the Lunar New Year was over, Chinese users had resumed buying. [ID:nSP383921]
PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH WEDNESDAY
Grade Price Change
Thai RSS3 (Mar) $1.51/kg unchanged
Thai RSS3 (Apr) $1.51/kg unchanged
Thai STR20 (Mar) $1.41/kg unchanged
Thai STR20 (Apr) $1.41/kg unchanged
Malaysia SMR20 (Mar) $1.41/kg unchanged
Malaysia SMR20 (Apr) $1.41/kg unchanged
Indonesia SIR20 (Mar) $0.60/lb unchanged
Indonesia SIR20 (Apr) $0.60/lb unchanged
Thai USS3 47 baht/kg unchanged
Thai 60-percent latex (drums, Mar) $1,200/tonne +$50
Thai 60-percent latex (bulk, Mar) $1,100/tonne +$50
Source: Reuters