This entry was posted on Wednesday, April 8th, 2009 at 8:00 pm and is filed under Rubber News. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.
TOKYO, April 8 (Reuters) – Tokyo rubber futures fell 4 percent to end below 170 yen on Wednesday, as profit taking and weak stock prices helped snap a six-day rally that had lifted prices to their highest in almost five months the previous day.
* Prices gained about 16 percent during the recent rally as improved technical charts and better German car sales figures encouraged buying on dips.
* Traders had warned, however, that the pace of the rise was too fast to be sustained.
* The key Tokyo Commodity Exchange rubber contract for September delivery <0#JRU:> ended at 167.7 yen per kg, down 7.0 yen, or 4 percent, up a touch from an intraday low of 167.1 yen.
* It rose to as high as 174.9 yen on Tuesday, the highest intraday level for any benchmark since Nov. 17.
* Some traders said charts indicated that TOCOM rubber could rise again, though it was not clear if it would be able to hold at a higher level, given a lack of strong news about improvements in the global economy.
* “I think TOCOM rubber will challenge the 180-yen level … but it will fall again if it fails to hold above that line,” a Tokyo-based trader said.
* U.S. crude futures fell below $48 per barrel on Wednesday pressured by an American Petroleum Institute report of a larger-than-expected build in U.S. crude supplies. [O/R]
* Market participants are also focusing on the fate of General Motors Corp . A source familiar with the company’s plans told Reuters on Tuesday that GM is in “intense” and “earnest” preparations for a possible bankruptcy filing. [ID:N07463416]
* The benchmark Nikkei average <.N225> lost close to 3 percent on Wednesday, as LCD TV maker Sharp Corp doubled its loss estimate for the business year just ended and other exporters were hurt by a stronger yen. [.T]
* The yen rose on Wednesday as falls in share prices and worries about upcoming earnings results for big U.S. companies prompted investors to seek currencies perceived as safer assets. [USD/]
PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH TUESDAY
Grade Price Change
Thai RSS3 (May) $1.70/kg +$0.06
Thai RSS3 (Jun) $1.70/kg +$0.06
Thai STR20 (May) $1.65/kg +$0.03
Thai STR20 (Jun) $1.65/kg +$0.03
Malaysia SMR20 (May) $1.65/kg +$0.05
Malaysia SMR20 (Jun) $1.65/kg +$0.05
Indonesia SIR20 (May) $0.70/lb +$0.02
Indonesia SIR20 (Jun) $0.70/lb +$0.02
Thai USS3 53.0 baht/kg +1 baht
Thai 60-percent latex (drums, May) $1,320/tonne +$20
Thai 60-percent latex (bulk, May) $1,200/tonne unchanged
Source: Reuters