SINGAPORE, Dec 18 (Reuters) – The most active rubber
contract on Tokyo Commodity Exchange ended lower on Friday after
a strong yen induced selling from speculators, snapping a
four-day rally which had sent prices to their strongest in
almost 15 months.
* TOCOM’s rubber contract for May 2010 delivery fell
as low as 264.1 yen per kg before settling at 269.6 yen, down
2.5 yen from previous settlement.
* The contract extended gains on Thursday and jumped to its
highest since September 2008 at 273.8 yen on speculative buying,
driven by China’s decision to slash import tariffs next year.
[ID:nTOE5BF04L]
* “The market is a bit mixed but I think it will try to test
new highs again,” said a dealer in Thailand’s southern city of
Hat Yai.
“I think it will go for a short-term correction before
crossing 275 yen,” said the dealer, referring to levels last
seen nearly 15 months ago.
* The dollar index <.DXY>, a gauge of the greenback’s
performance against six major currencies, fell 0.3 percent to
77.498, off Thursday’s high of 77.943, its highest since early
September. The dollar was down 0.4 percent at 89.62 yen .
[USD/]
* Physical rubber prices were mostly steady in Southeast
Asia after several deals for Indonesian and Thai grades were
struck late on Thursday. [ID:nSGE5BH014]
* January SIR20 was traded at 130.50 U.S. cents a pound for
January shipment, while RSS3 changed hands at $2.87 a kg for
delivery in the first quarter of next year. Tyre makers also
bought SIR20 at 129.50 and 129.75 cents a pound.
* Deliverable rubber inventories in warehouses monitored by
the Shanghai Futures Exchange rose by 6 percent in the week
ended Thursday to 131,032 tonnes, the exchange said on Friday.
[ID:nBJD003339]
* Oil was slightly higher near $73 a barrel on Friday,
underpinned by signs of a gradual economic recovery in the
United States and the prospect of increased winter demand as a
cold snap gripped the U.S. Northeast. [O/R]

Source: Reuters

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