TOKYO, March 16 (Reuters) – Key Tokyo rubber futures were nearly flat on Monday, recovering earlier losses made on a slump in oil prices, but activity was subdued as players awaited fresh news.
* With demand staying weak, traders said they were tracking other markets such as oil and stocks for direction. The wintering dry season has lent support to the market as it tightens supply.
* The key Tokyo Commodity Exchange rubber contract for August delivery <0#JRU:> ended up 0.2 yen at 136.7 yen per kg, after trading in a narrow range between 134.8 yen and 138.5 yen.
* “We are waiting for new factors,” said a Singapore-based trader, adding that the futures market lacked direction along with the physical market, and it was seeking clues from oil prices. “Global demand is weak so I expect the market to remain like this,” the trader said of futures prices being stuck in narrow ranges.
* In the latest wave of suspensions brought on by plummeting demand as economic woes hit consumer spending, Toyota Motor Corp <7203.T> said on Friday it would halt production at its Russian factory between March 30 and April 6. [ID:nLD653601]
* The world’s top three rubber producing countries, which have agreed to reduce exports this year, are set to meet the Chinese rubber association on Tuesday in Guangzhou, China, to look for ways to cooperate to stabilise prices and avoid defaults. [ID:nBKK441546]
* Oil fell more than 3 percent on Monday to below $45 a barrel, as traders questioned whether OPEC’s decision to enforce better compliance with previous curbs rather than make new production cuts was enough to offset falling global demand. [O/R]
* OPEC ministers agreed on Sunday to leave existing output targets unchanged, but promised to enforce those curbs more strictly. They said they would meet again at the end of May to review progress. [ID:nLF35711]
* The dollar rose broadly on Monday, driven largely by technical trading after it bounced from the day’s lows. A weaker yen helps support the rubber market as it inflates yen-based futures prices. [USD/]
* Trading was subdued in the physical market, keeping prices unchanged from Friday.

PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH FRIDAY
Grade Price Change
Thai RSS3 (Apr) $1.44/kg unchanged
Thai RSS3 (May) $1.44/kg unchanged
Thai STR20 (Apr) $1.37/kg unchanged
Thai STR20 (May) $1.37/kg unchanged
Malaysia SMR20 (Apr) $1.37/kg unchanged
Malaysia SMR20 (May) $1.37/kg unchanged
Indonesia SIR20 (Apr) $0.56/lb unchanged
Indonesia SIR20 (May) $0.56/lb unchanged
Thai USS3 45 baht/kg unchanged
Thai 60-percent latex (drums, Apr) $1,300/tonne unchanged
Thai 60-percent latex (bulk, Apr) $1,200/tonne unchanged

Source: Reuters

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