This entry was posted on Wednesday, May 6th, 2009 at 8:43 am 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.
Singapore – Asian rubber futures settled higher Monday, supported by firmer crude oil prices and gains in regional equity markets, traders said.
The Tokyo Commodity Exchange and Central Japan Commodity Exchange are closed Monday, Tuesday and Wednesday for a public holiday in Japan. Trading on both markets resumes Thursday.
On the Shanghai Futures Exchange, rubber futures settled sharply higher after trading 6% limit-up for most of the day, in line with gains in other commodities across the board, said analyst Zhang Fangfang with Shanghai Jiuheng Futures.
SHFE rubber contracts are likely to consolidate in the near term on technical cues, with resistance expected at the CNY16,000/ton level, Zhang said.
On the Singapore Commodity Exchange, rubber settled higher, in line with gains in SHFE rubber futures, with firmer crude oil prices encouraging buying.
RSS3 futures on the Agricultural Futures Exchange of Thailand also settled higher, tracking gains in other commodities and equities, said a trader in Bangkok.
Further upside now appears possible with the current tight supply situation following the recent wintering season also adding to the bullish mood. A test of THB65/kg technical resistance looks possible in coming sessions, he said.
Asian cash rubber prices were higher, supported primarily by strong gains on the SHFE, with some spot buying by futures traders eager to cover short positions, traders said.
Low supply was also a supportive factor, with sporadic rain continuing to hamper tapping work in southern Thailand and northern Malaysia following the recent wintering seasons in both countries, said a trader in Singapore.
“Supply is gradually increasing, but is currently only running at around 60-70% of optimum levels for this time of year,” he said.
*Note: All previous closing prices in the below tables refer to April 30 as markets throughout the region were closed on May 1 for public holidays. The previous AFET and SICOM benchmark contracts have now expired.
Asian Rubber Futures
May 4 Change from
April 30 Close
Tocom Oct RSS3 Market Closed –
C-Com Oct RSS3 Market Closed –
Shanghai Sep SCR5 CNY15,285/ton Up CNY725
Thai Dec RSS3 THB63.00/kg Up THB2.70
Sicom Jun RSS3 169.00 U.S cents/kg Up 6.00 cents/kg
Sicom Jun TSR20 158.80 U.S cents/kg Up 7.00 cents/kg
The following are physical prices in Asia, quoted in U.S. cents a kilogram, FOB basis
Grade Shipment May 4 Apr 30
Bids Offers Bids Offers
RSS3 May – 169-170 – 167
STR20 May – 163-164 – 163
SIR20 May – 154.3 – 148
SMR20 May – 163 – 160-161
USS3 May THB55.00/kg THB54.03/kg
Source: Moneycontrol.com