Tokyo Rubber Futures Tumble as Oil Falls

Tokyo Rubber Futures Tumble as Oil Falls
TUESDAY, APRIL 12, 2011

Key Tokyo rubber futures tumbled 3.7 percent in early morning trade on Tuesday (April 12), hit by a drop in oil prices and the yen's rise, but a limited supply from Thailand will likely support the downside.
The key Tokyo Commodity Exchange rubber contract for September delivery was down 2.9 percent, or 13.7 yen, at 461.5 yen as of 0039 GMT. The contract plunged as low as 457.2 yen in the evening session on Monday (April 11), which is counted as part of the Tuesday regular session.
The lead contract last week posted its biggest weekly increase since the week ending on March 18.
"The yen's rise and a plunge in oil prices are affecting the rubber market. But limited supply from Thailand, where the market is closed due to a festival, will support the downside," said Hiyuki Kikukawa, a general manager at Nihon Unicom Inc in Tokyo, a trading company.
The most active Shanghai rubber contract for September delivery rose 385 yuan to close at 37,065 yuan ($5,672) per tonne on Monday (Apr.11). Volume stood at 501,028 lots.
Brent and U.S. crude fell more than $1.50 a barrel on Tuesday (Apr.12) in Asian trade as long-term commodity bull Goldman Sachs advised investors to lock in trading profits before oil and other markets reverse.
Stock prices mostly fell on Monday as energy shares sold off on lower oil prices, and as the earnings season onset was clouded by concern that company outlooks may fall short of expectations.
Car sales in China rose 6.5 percent to 1.35 million units in March, recovering from the lowest growth rate in two years in February but still well below the hectic pace seen last year.
Toyota Motor Corp on Monday (Apr.11) warned that the uncertain supply of parts from Japan could threaten its output of vehicles through July, the latest sign of trouble for the global auto industry stemming from the massive Japanese earthquake a month ago.
(Reuters, Tokyo, April 12, 2011)




Malaysia natural rubber output slides 15.8% in February
TUESDAY, APRIL 12, 2011

KUALA LUMPUR (Commodity Online): Malaysia’s natural rubber output for February dropped 15.8% to touch 91,449 tons.
This is a dip from 108,625 tons recorded in January, but a climb of 12.9% Y-O-Y output from 81,031 tons.
Total stocks for end of February stood at 191,538 tons up 7.2% over January. But this is 1.1% lower at 193,685 tons over same period previous year.
Small holders of rubber contributed 94.2% of February production while the estate sector accounted for the rest.
Exports slid 10.9 per cent to 69,638 tons in February from 70,551 tons in January. This February figure is higher from 50,362 tons recorded in the same period last year.
In January, to promote rubber cultivation in Malaysia, the Malaysian Rubber Board (MRB) had established two pivotal facilities.
MRB Similajau Station and Malaysian Rubber Budwood Centre (MRBC), are touted the first of their kind.
The station’s functioning is to facilitate technology transfer of new clones and agronomic practices, through various supply systems and training measures, while MRBC shall produce 3.24 million rubber budwoods a year.
Similajau Station, spread across 1,180ha and the MRBC covering 45 ha are widely expected to boost rubber cultivation in Sabah and Sarawak; two other provinces in Malaysia where the government intends to plant high-yielding rubber trees in 300,000 ha and 500,000 ha respectively by 2020.



February Rubber Output Down 15.8 Per Cent
TUESDAY, APRIL 12, 2011

KUALA LUMPUR, April 12 (Bernama) -- Natural rubber output in February fell 15.8 per cent to 91,449 tonnes, from 108,625 tonnes recorded in January, but rose 12.9 per cent when compared with a year ago's output of 81,031 tonnes.
Total stocks stood at 191,538 tonnes, at end-Feb, up 7.2 per cent over January but was 1.1 per cent lower at 193,685 tonnes in the same period last year.
Smallholding sector contributed 94.2 per cent of total production in February while the estate sector accounted for 5.8 per cent.
Exports of natural rubber dipped 10.9 per cent to 69,638 tonnes in February, against January's output of 78,143 tonnes but increased against 65,296 tonnes exported in February last year.
Natural rubber imports fell 23.3 per cent to 54,083 tonnes in February from 70,551 tonnes, a month earlier, but was higher when compared with 50,362 tonnes recorded in the same period last year.




NMCE, India: Sheet rubber slips on buyer resistance
TUESDAY, APRIL 12, 2011

KOTTAYAM, APRIL 11:
Physical rubber prices witnessed a mixed trend on Monday. The market remained under pressure following the early declines in domestic futures but the losses were limited since the prices recovered partially on the National Multi-Commodity Exchange (NMCE).
Sheet rubber slipped to Rs 240 a kg(Rs 241) on buyer resistance. The grade improved to Rs 240 a kg (Rs 239.50) both at Kottayam and Kochi, according to the Rubber Board.
RSS-4 weakened in the April series to Rs 239.50 (Rs 241.41), May to Rs 245.90 (Rs 249.05), June to Rs 251.11 (Rs 253.40), July to Rs 250.85 (Rs 253.93), August to Rs 245.50 (Rs 248.39) and September to Rs 238.50 (Rs 242.75) a kg on the NMCE.
The volumes totalled 12,620 lots and open interest 8,679 lots. The turnover was Rs 311.49 crore.
Spot rates
RSS-3 (spot) closed at Rs 271.23 a kg (Rs 270.39) at Bangkok. April futures improved to ¥492 (Rs 257.60) from ¥480 during the day session but then declined to ¥485 a kg (Rs 253.88) in the night session on the Tokyo Commodity Exchange.
Spot rates were (Rs/kg): RSS-4 — 240 (241); RSS-5 — 238 (238); ungraded — 233 (234); ISNR 20 — 235 (235) and Latex 60 per cent — 142 (142).