Mixed trend in spot rubber prices

Mixed trend in spot rubber prices
Kottayam: Physical rubber prices witnessed a mixed trend on Thursday. Sheet rubber opened better at Rs 121 a kg but it shed the gains on late trades following the declines in domestic futures on NMCE.

Most of the grades finished higher as there was no selling pressure in the main marketing centres even at higher levels. Major manufacturers were on the sidelines, expecting the market to move down further during the weekend sessions.

Futures weak
RSS 4 weakened with the December futures slipping to Rs 121.50 (123.45), January to Rs 123.41 (125.76) and February to Rs 125.50 (127.69) a kg on National Multi Commodity Exchange (NMCE). RSS 3 slipped with the December futures sliding to ¥243.3 (¥244.2) (Rs 130.35), while the January futures moved up to ¥245 (¥243.5) and February to ¥246.4 (¥245.4) a kg during the day session on Tokyo Commodity Exchange (TOCOM). RSS 3 closed firm at Rs 125.43 (123.85) a kg at Bangkok. The grade improved to Rs 125.76 (124.05) a kg on Singapore Commodity Exchange (SICOM). (BL)
http://www.thehindubusinessline.com/2009/11/27/stories/2009112751261600.htm

Rubber Producers End Export Curbs as Demand Recovers (Update1)

Nov. 27 (Bloomberg) -- Thailand, Indonesia and Malaysia, the world’s biggest rubber producers, ended curbs on exports as the global economic recovery stokes demand and prices of the commodity used in tires and gloves, a producers’ group said.
“Prices have recovered and the market has improved while supply is tight and stock is low,” Abdul Rasip Latiff, chief executive officer of the International Rubber Consortium Ltd., said today. The decision was made last week at a meeting of the International Tripartite Rubber Council, he said.
Natural rubber prices have jumped 81 percent this year on speculation rising crude oil and growth in China, the biggest consumer, may push up demand. China’s economy grew 8.9 percent in the third quarter, the fastest pace in a year, and oil is up 70 percent this year, making rubber more attractive than rival products made from petroleum.
“We had the program to improve the price and we’ve met our objective,” Abdul Rasip said in a phone interview.
Rubber for May delivery fell as much as 9.1 yen to 244 yen per kilogram ($2,838 a ton) on the Tokyo Commodity Exchange. It traded at 246.1 yen at 11.55 a.m. Bangkok time. The price slid for the first time this week as a rally by the Japanese currency weakened the appeal of yen-denominated contracts.
Thailand, Indonesia and Malaysia, which harvest about 7 million tons a year, pared exports by 690,000 tons in the January-July period, approaching the 700,000 ton target set in December to combat a 56 percent slump in prices last year.
Heavy rain in Thailand’s southern provinces, the key area for rubber plantation, may hurt production, Abdul Rasip said.
“Supply will be very tight until the rest of the year and stocks will be very low because of rain in southern Thailand and Malaysia,” he said. “The outlook is good.”