Asian rubber futures settled lower in thin volume
Monday, weighed down by a general lack of supportive fundamental news and
weakness throughout the commodities complex, notably crude oil.
On Tocom, rubber futures settled lower in very thin volume with just 7,211
lots done during the day session.
Further downside is now expected, though the market is likely to find
strong technical support at Y166/kg, barring fresh bearish news, market
observers said.
Tocom’s benchmark October RSS3 contract settled Y4.6 lower at Y172.9/kg
during the day session and continued to decline further during the night
session. The night trading price will be incorporated into tomorrow’s trading.

On C-Com, rubber futures also settled lower in thin volume with just four
lots done, with the similar decline on the bellwether Tocom and recent
weakness in crude oil prices the main reason for the decline.
On the Shanghai Futures Exchange, rubber futures settled 2% lower on
falling China consumer and producer price indexes.
The CPI and PPI declines were widely expected but rubber analysts generally
see them as signal for weakening home prices, a bearish harbinger for rubber,
said Cao Ziyi of Shanghai Jinpeng Futures.
Further downside now appears likely though the market should find support
around CNY14,800/ton, Cao said.
On Sicom, rubber settled lower, in line with declines on other key markets.

RSS3 futures on the Agricultural Futures Exchange of Thailand also settled
down, in line with the similar decline on the influential Tocom and SHFE
markets, again with recent weakness in crude oil prices the main reason for
the decline, said a trader in Bangkok.
The rubber market continues to lack clear direction and the focus is now on
how Tocom reacts around the next important technical support level at Y166/kg,
he said.
Asian cash rubber prices mostly eased, weighed down by weakness in
influential Tocom and SHFE futures, traders said.
Tight supply following the recent end of the wintering season is likely to
limit the downside, said a trader in Singapore.
Still, buyers were largely absent today following the weekend, while the
decline on the bellwether Tocom also fueled a sentiment that spot prices may
ease further in coming sessions, he said.
Supply remains low but is likely to increase in coming weeks as the
wintering season is now over, though sporadic rain continues to hamper tapping
work in southern Thailand, and northern Malaysia, the trader said. Asian
Rubber Futures May 11 Change from
May 8 Close Tocom Oct RSS3
Y172.9/kg Dn Y4.6 C-Com Oct RSS3 Y173.9/kg Dn Y2
Shanghai Sep SCR5 CNY15,270/ton Dn CNY320 Thai Dec RSS3
THB60.10/kg Dn THB3.00* Sicom Jun RSS3 168.00 U.S cents/kg
Dn 4.50 cents/kg Sicom Jun TSR20 156.00 U.S cents/kg Dn 6.00 cents/kg
The following are Today’s physical prices in Asia, quoted in U.S. cents a
kilogram, FOB basis Grade Shipment May 11 May 8
Bids Offers Bids Offers RSS3 Jun –
178 – 175-177* STR20 Jun – 170 –
172* SIR20 Jun – 158 – 160.9 SMR20
Jun – 164 – 169 USS3 May
THB58.5/kg THB57/kg* *Note: Thai markets were closed Friday
for a public holiday. As such, the price change for Thai RSS3 futures, RSS3,
TSR20 and USS3 cash prices all refer to the change from Thursday’s close.

Source: Dow Jones

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