NR prices recover in Tokyo (June 29)

NR prices recover in Tokyo (June 29)
June 29, 2011




On Tokyo’s Tocom Exchange, prices for the six-month contract recovered by yen 7 overnight, closing at yen 358 ($4.41) per kg on Wednesday 29 June. Shorter-dated prices moved up, closing at around yen 364.

In Singapore, SGX said September RSS3 was up around $0.04 on Tuesday’s prices at around $4.45. Contracts for December 2011 were trading at around $4.44.5. Short-dated TSR 20 was also trading up by about $0.06 at $4.33.

In India, the NMCE saw July deliveries rise by a rupee to around Rs208 ($4.63) per kilo

In China, the Shanghai Futures Exchange also saw prices rise by a fraction of a yuan, with July deliveries trading at around Yuan 32.7 ($5.05) per kilo.





Oil rises above $94 amid US crude supply drop
June 29, 2011




AP – Oil prices rose above $94 a barrel Wednesday on hopes that Greece will approve a crucial austerity package and after a report showed a drop in U.S. crude supplies, suggesting improved demand.

By early afternoon in Europe, benchmark oil for August delivery was up $1.17 to $94.06 a barrel in electronic trading on the New York Mercantile Exchange. Crude gained $2.28 to settle at $92.89 on Tuesday.

In London, Brent crude for August delivery was up $1.85 to $110.63 a barrel on the ICE Futures exchange.

Markets were awaiting a vote by Greek lawmakers later Wednesday on a $40 billion austerity plan. European officials say the government spending cuts are a necessary condition to receive the next installment of Greece’s $156 billion bailout loan from the European Union and the International Monetary Fund, and avert a debt default.

Hours of rioting by protesters against the austerity plan outside Greece’s parliament in Athens left 46 people injured Tuesday and clashes with police were continuing Wednesday.

Shortly before the vote, an opposition deputy said she would back the unpopular bill, boosting chances the measures will be passed.

“Investors appear to be pricing in an orderly resolution to the Greek debt crisis,” Ritterbusch and Associates said in a report. “However, any missteps toward the approval of a Greek austerity package could quickly reverse gains.”

Rising confidence in the approval of the Greek austerity deal also helped weaken the dollar, making crude cheaper for investors.

The euro was up to $1.4434 on Wednesday from $1.4364 late Tuesday in New York.

The American Petroleum Institute, meanwhile, said late Tuesday that crude inventories fell 2.7 million barrels last week while analysts surveyed by Platts, the energy information arm of McGraw-Hill Cos., had predicted a drop of 1.7 million barrels.

Inventories of gasoline dropped 91,000 barrels last week while distillates fell 945,000 barrels, the API said.

The Energy Department’s Energy Information Administration reports its weekly supply data later Wednesday.

Crude has dropped from near $115 early last month amid concerns about slowing demand from the U.S. and Europe. Oil had surged from $84 in February, pinching consumer spending and helping to slow economic growth.

“There is little doubt that the jump in the price of oil earlier this year is an important reason why the global economy has lost momentum,” Capital Economics said in a report.

“The recent fall in oil prices should help prevent what would otherwise have been an imminent double-dip (recession), but it will not be enough to rescue the world economy from a prolonged period of sluggish growth.”

Capital Economics said it estimates a $20 fall in the price of oil increases global demand and economic activity by 0.5 percent.

In other Nymex trading in July contracts, heating oil added 5.85 cents to $2.8842 a gallon while gasoline gained 2.4 cents at $2.9136 a gallon. Natural gas futures fell 2.3 cents to $4.331 per 1,000 cubic feet.




India rubber futures may maintain momentum as crude climbs
June 29, 2011




KOCHI (Commodity Online): India natural rubber futures may maintain the momentum in the coming days, riding the wave of crude oil prices. But a sharp uptrend is unlikely as the drag on prices would be there as supply situation in Thailand is robust.

Besides, the weather condition in Kerala—a major rubber prodcing state in India– is favourable for tapping.

All natural rubber contracts on the TCOCM are trading in green with the far month December contract gaining the maximum of 9.4 yen and trading at 347.3 yen as on 13.55 JST(10.30 IST). The near month July contract is trading at 358 yen, gaining 5 yen.

On the NMCE, natural rubber far month October contract and the near month July contract are trading in green even as the August and September contracts are trading in red. The July contract opened at the NMCE for Rs.20900, touched a high of Rs.21,100 and a low of Rs.20,830 before being traded at Rs.20,832. The October contract opened at a high of Rs.20, 825, touched a low of Rs.20750 and was seen trading at the same price.

With global concerns regarding the Greek economy easing a bit and crude stockpiles in US dropping, Oil traded near a four-day high in New York.

August crude was at $92.90, up 1 cent, in electronic trading on the New York Mercantile Exchange at 1:35 p.m. Sydney time. The contract on Tuesday gained $2.28, or 2.5 percent, to $92.89, the highest close since June 22, reported Bloomberg.





Cash for rubber move to cut middlemen
June 29, 2011




KOTA KINABALU: The Sabah Rubber Industry Board (SRIB) is promising smallholders that it will buy their produce using cash in a move to eliminate middlemen.

Newly-appointed SRIB chairman Ahmad Bujang has assured that all purchases will be done in cash.

“SRIB is now paying cash for rubber it purchases from smallholders in the farm,” said Ahmad who visited Keningau two days ago to talk to smallholders about their problems.

The move comes amid complaints from smallholders that SRIB failed to pay cash previously and this forced them to sell rubber to middlemen at a lower price as they needed the cash.

Ahmad advised smallholders to produce good quality Grade 1 rubber in order to fetch a higher price.

He said the Government, through SRIB, had provided financial assistance to smallholders in the state in the form of grants to plant and re-plant rubber trees.

He urged smallholders to continue giving their full support to SRIB by selling their rubber to the board.

“For the convenience of small-holders, SRIB would study the possibility of setting up collection stations in villages,” he said.