Rubber Snaps Six-Day Drop as Yen Weakens, Car Sales Increase

Rubber Snaps Six-Day Drop as Yen Weakens, Car Sales Increase
Feb. 1 (Bloomberg) -- Rubber gained for the first time in seven days as a drop in the Japanese currency boosted the appeal of the yen-based contracts and rising car sales stoked speculation demand will grow for the commodity used in tires.
Futures in Tokyo rose as much as 1.4 percent. Prices fell 5.2 percent last week, the worst performance since the week ended Dec. 11, amid concern the U.S. and China may move to curb economic stimulus measures.
The market rose as the yen dropped against the dollar after data showed Jan. 29 that the U.S. economy grew at the fastest pace in six years last quarter. It was also supported today by data showing that Japanese auto sales posted the sixth straight increase in January, said Takaki Shigemoto, an analyst at research and investment company JSC Corp. in Tokyo.
“A weak yen provided the largest support to the price of futures,” Shigemoto said today by phone.
Rubber for July delivery gained as much as 3.8 yen to 278.1 yen per kilogram ($3,082 a metric ton) before settling at 275.4 yen on the Tokyo Commodity Exchange.
The yen traded at 90.24 per dollar at 3:44 a.m. in Tokyo after reaching a one-week low of 90.93 on Jan. 29. The U.S. currency climbed after data from the U.S. Commerce Department showed gross domestic product grew at a 5.7 percent annual pace last quarter, the fastest pace in six years and topping economist estimates.
Sales of cars, trucks and buses, excluding minicars, rose 37 percent from a year earlier to 238,362 vehicles in January, the Japan Automobile Dealers Association said in a statement today. Toyota Motor Corp. boosted sales to 117,154 vehicles, excluding Lexus-brand cars. The company’s recent recalls of vehicles for faulty accelerator pedals don’t include models sold in Japan.
Auto Recovery
Japan’s auto sales began recovering from a yearlong slide in August as government rebates and tax cuts for fuel-efficient vehicles helped rekindle demand. The incentives helped raise sales by about 600,000 vehicles last year and may increase them by about 900,000 this year, the Japan Automobile Manufacturers Association said on Dec. 24.
May-delivery rubber on the Shanghai Futures Exchange ended little changed at 23,000 yuan ($3,369) a ton. Prices earlier slumped to 22,250 yuan, the lowest level since Dec. 16.
“Futures in Shanghai were earlier dragged down by speculation that China may take more steps to curb economic growth,” Shigemoto said. Chinese banks have begun restricting new loans, responding to a push by regulators to contain credit and curb the economic expansion.
Rubber inventories plunged 9,881 tons to 141,951 tons, the Shanghai exchange said on Jan. 29, based on a survey of 10 warehouses in Shanghai, Shandong, Yunnan, Hainan and Tianjin.

Mixed trend in rubber

Kottayam: Physical rubber prices showed a mixed trend on Monday. A bullish mood in the domestic futures kept sheet rubber firm and the grade improved to Rs 132 from Rs 131.50 on covering purchases. There were no fresh enquiries from the tyre sector.

Meanwhile, latex 60 per cent declined on comparatively low demand. The transactions were in a low key.

Futures improve

RSS 4 improved at its February futures to Rs 133.70 (132.48), March to Rs 136 (134.34), April to Rs 139.67 (138) and May to Rs 141.56 (140.37) a kg on National Multi Commodity Exchange (NMCE). RSS 3 slipped to Rs 140.03 (141.08) a kg on Singapore Commodity Exchange (SICOM). But the grade (spot) moved down to Rs 141.27 (143.52) a kg at Bangkok. The February futures for RSS 3 closed at ¥264.5 (¥262.7) (Rs 135.85), March at ¥265.3 (¥264.7), April at ¥267.1 (¥268.5), May at ¥270.3 (¥269.2), June at ¥272.4 (¥271.6) and July at ¥275.4 (¥274.3) a kg during the day session on Tokyo Commodity Exchange (TOCOM). The February futures slipped to ¥262.8 and March to ¥265 while the April futures firmed up to ¥268.5, May to ¥271, June to ¥273.9 and July to ¥276.6 a kg during the night session.

Spot rates were (Rs/kg): RSS-4: 132 (131.50); RSS-5: 129 (129); ungraded: 127 (126); ISNR 20: 129 (129.50) and latex 60 per cent: 89 (90). (BL)

NYMEX-Crude extends gains to near $75 after 2 pct jump
TOKYO, Feb 2: U.S. crude futures extended their gains to around $75 a barrel on Tuesday, helped by a weaker dollar and U.S. manufacturing data that pointed to optimism about the economic recovery. (Reuters)
http://in.reuters.com/article/oilRpt/idINTOE6100AP20100202

International Rubber Price (02-Feb-2010 , 10:28 Hours IST) INTERNATIONAL RUBBER MARKETS PRICE UPDATIONS DATE:02 Feb 2010

MARKETS TOCOM (RSS3) Jul10 Fut 333 ,Up 328 Up ,326 Up

Shanghai(RSS3) May10 Fut 366 Up ,341 Up

MALAYSIA ( SMR 20 ) Spot 47 Up

SICOM(RSS3) Spot 141.00(97 Up)

BANGKOK ( RSS3 ) Spot 140.94(33 Down)