TOKYO, April 2 (Reuters) – Key Tokyo rubber futures closed up
nearly 3 percent on Thursday though off a 4-½ month high
touched earlier in the day, as gains in oil prices and bullish
signs in technical charts boosted the market.
* Technical charts suggest rubber could rise to 180 yen per
kg in the mid to long term.
* News that U.S. auto sales posted a smaller-than-expected
fall in March also helped improve market sentiment, traders said.
* The key Tokyo Commodity Exchange rubber contract for
September delivery <0#JRU:> closed at 158.1 yen per kg, up 4.3
yen or 2.8 percent from the previous day, after earlier touching
159.4 yen, the highest since Nov 19.
* “Last year, the market had fallen to 100 yen after peaking
around 350-360, hurt by a stream of bad news. Having experienced
such a steep decline, investors are less and less sensitive to
bad news. They are more sensitive to good news,” said a manager
at a Japanese trading firm.
“Technical charts have improved since last week and supported
the bullish mood,” he said. He said the market’s range has risen
to between 140 and 160 yen since the key contract broke above 150
yen last week. The previous range was 120-140 yen, he said,
adding that prices could go as high as 180 yen.
* A Reuters poll of 10 analysts and dealers expect on average
that the TOCOM benchmark sixth-month contract , currently
September 2009, will reach 151.3 yen by the end of this month.
[ID:nBKK381314]
* Indonesia’s natural rubber exports may drop below 2 million
tonnes, the lowest in five years, as the global crisis hits
demand, an industry official told Reuters in an interview.
[ID:nnJAK503627]
* U.S. crude futures rose to about $50 a barrel on
Thursday as further supply cuts by OPEC and gains in stock
markets offset worries about the global economy. [O/R]
* U.S. auto sales fell 37 percent in March, a
smaller-than-expected drop that encouraged hope the world’s
largest car market is nearing bottom after a freefall that has
pulled the industry into a deepening crisis. [ID:nN01293914]
* In Japan, industry-wide auto sales fell 25 percent in March
from a year earlier to 546,098 vehicles. [ID:nTKG004294]
* In the physical market prices were little changed.

PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH WEDNESDAY
Grade Price Change
Thai RSS3 (May) $1.55/kg unchanged
Thai RSS3 (Jun) $1.55/kg unchanged
Thai STR20 (May) $1.53/kg -$0.02
Thai STR20 (Jun) $1.53/kg -$0.02
Malaysia SMR20 (May) $1.53/kg -$0.02
Malaysia SMR20 (Jun) $1.53/kg -$0.02
Indonesia SIR20 (May) $0.63/lb unchanged
Indonesia SIR20 (Jun) $0.63/lb unchanged
Thai USS3 49.5 baht/kg +0.5 baht
Thai 60-percent latex (drums, May) $1,300/tonne unchanged
Thai 60-percent latex (bulk, May) $1,200/tonne unchanged

Source: Reuters

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