TOKYO, March 5 (Reuters) – Tokyo rubber futures closed at a
one-week high on Thursday as a rally in equities provided some
respite to worries about demand for the industrial commodity,
leading to an unwinding of short positions.
* A fall in the yen versus the dollar also inflated
yen-based futures prices, although profit-taking blocked the
market from breaking above its recent range. [FRX/]
* The key Tokyo Commodity Exchange rubber contract for August
delivery <0#JRU:> ended at 138.7 yen per kg, up 4.2 yen or 3.1
percent from Wednesday in the highest close since Feb. 27.
* The contract hit a one-week peak of 142.9 yen during the
day.
* “The market posted initial gains due to the weaker yen,
gains in stocks and a rise in energy prices, which all favour
rubber,” said a manager at a commodities brokerage in Tokyo.
“Fund short-covering accelerated the rally later on.”
* But the manager said sell orders were lined up at or above
140 yen as the Tokyo market was seen caught in a range of between
130 and 145 yen.
* Underlining persistent doubts over rubber demand in the
auto industry, European carmakers said on Wednesday they expected
production to fall 25 percent this year, and called for easier
and faster access to funding. [ID:nL4683381]
* Japan’s Nikkei share average <.N225> gained 2 percent,
rising for a second day as hopes for fresh stimulus steps in
China and an economic recovery there boosted machinery stocks.
[.T]
* U.S. crude futures hovered around $45 per barrel on
Thursday, after surging nearly 9 percent on government data
showing an unexpected drop in U.S. crude stocks. [O/R]
* The dollar firmed to 99.30 yen , staying near a
four-month high of 99.49 yen hit the previous day. [USD/]

PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH WEDNESDAY
Grade Price Change
Thai RSS3 (Mar) $1.43/kg -$0.02
Thai RSS3 (Apr) $1.43/kg -$0.02
Thai STR20 (Mar) $1.34/kg -$0.01
Thai STR20 (Apr) $1.34/kg -$0.01
Malaysia SMR20 (Mar) $1.34/kg -$0.01
Malaysia SMR20 (Apr) $1.34/kg -$0.01
Indonesia SIR20 (Mar) $0.55/lb unchanged
Indonesia SIR20 (Apr) $0.55/lb unchanged
Thai USS3 45 baht/kg unchanged
Thai 60-percent latex (drums, Mar) $1,250/tonne -$50
Thai 60-percent latex (bulk, Mar) $1,150/tonne -$20

Source: Reuters

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