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SINGAPORE, Nov 18 (Reuters) – The most active rubber contract
on the Tokyo Commodity Exchange was steady near its strongest in
more than a year on Wednesday as a rise in oil prices helped
resist selling pressure from speculators after a recent rally.
* TOCOM’s rubber contract for April delivery <0#JRU:> settled
0.1 yen per kg higher at 238.4 yen after trading as high as 239.3
yen — not far from a 13-month high of 240.7 yen hit on Tuesday.
* The contract has gained more than 2 percent this week, also
boosted by tight supplies in Southeast Asia after the dry
wintering season curbed supply in Indonesia and heavy rains
disrupted the flow of latex in Thailand and Malaysia.
* “The market seemed to be able to go above 240 yen, so it’s
most likely that we can go for a small correction,” said a dealer
in Thailand’s southern city of Hat Yai. “I think some physical
buyers are waiting for a price dip.”
* Oil rose towards $80 a barrel on Wednesday after an
industry report showed that crude stocks in the U.S. fell steeply
last week, but gains were limited by U.S. economic data that
painted a picture of a slow recovery. [O/R]
* In the physical market, some Chinese buyers have turned
their backs on Indonesian rubber after prices surged more than 10
percent in the past month on tight supplies and gains in Tokyo
futures.
* But purchases from Europe and the United States could fill
the demand gap during China’s absence, said dealers, adding that
a few cargoes of Indonesia’s SIR20 had also been sold to dealers
in Singapore at $2.50 a kg for forward shipments. [ID:nSP424289]
Source: Reuters