RUBBER-Tokyo futures hit 1-week low due to weak oil, poor US data (July 11)

RUBBER-Tokyo futures hit 1-week low due to weak oil, poor US data (July 11)
July 11, 2011


Bangkok, July 11 (Reuters) – Tokyo rubber futures dropped 2.5 percent to a one-week low on Monday as weak U.S. economic data raised concern about demand, and falling oil prices added to the downward pressure, dealers said.

The benchmark rubber contract on the Tokyo Commodity Exchange <0#JRU:> for December delivery fell 9.8 yen, or 2.5 percent, to settle at 369.4 yen ($4.92) per kg.

It fell to an intra-day low of 369.2 yen, the lowest since July 4.

The most active rubber contract on the Shanghai futures exchange for January delivery fell 680 yuan to finish at 33,665 yuan ($5,207) per tonne.

U.S. jobs growth ground to a near halt in June as employers hired the fewest workers in nine months, frustrating hopes the economy would bounce back quickly from a slowdown in the first half of the year. That signalled poor demand for commodities.

“The U.S. data was not good and weaker oil prices were an additional factor that hammered rubber prices down,” one dealer said.

Oil fell for a second day on Monday, pushed down by the U.S. data plus a drop in China’s crude imports.

In additiona, China’s annual inflation accelerated to a three-year high in June, increasing the chances that the central bank will keep raising interest rates to tame price pressures and raising fears for growth in the car sector.

However, dealers said TOCOM rubber could rebound on Tuesday if it found support at 365 yen and oil prices recovered.






India releases rubber stats for 12 months to March 2011
July 11, 2011




Kottayam, Kerala, India — India’s Rubber Board has released production and consumption statistics for the financial year to the end of March 2011. The data is published in the May 2011 edition of Rubber Statistical News.

Production of Natural Rubber (NR) in the country during 2010-11 was 861,950 tonnes compared to 831,400 tonnes during 2009-10 and recorded a growth of 3.7% compared to the previous year.

Synthetic Rubber production increased to 110,340 tonnes during 2010-11 from 106,743 tonnes during 2009-10, registering a growth of 3.4% as against a growth of 10.3% during 2009-10. The share of poly-butadiene rubber was 69% during 2010-11.

total consumption of NR in 2010-11 was 947,715 tonnes with a growth of 1.8% as against 930,565 tonnes during 2009-10. The auto tyre sector registered a growth of 3.7% as against 13.4% achieved during 2009-10.

SR consumption increased to 411,830 tonnes during 2010-11 registering a growth of 18.4% as against 347,710 tonnes consumed during 2009-10. The automotive tyre sector consumed 298,414 tonnes of SR during 2010-11 as against 238,153 tonnes during 2009-10, recording a growth of 25.3%.

The relative share of consumption of NR and SR in India changed to 70:30 during 2010-11 from 73:27 during 2009-10.




Crude Oil Falls for a Second Day in New York as U.S. Jobless Rate Climbs
July 11, 2011



Bloomberg - Oil declined for a second day in New York as investors bet rising unemployment in the U.S. indicated that fuel demand may falter in the world’s biggest crude- consuming nation.

Futures slipped as much as 0.5 percent after the Labor Department said July 8 that U.S. employers last month added the fewest workers in nine months and the unemployment rate rose to 9.2 percent, the highest this year. A report this week may show sales at U.S. retailers stagnated in June.

“The one thing that’s going to restrain the demand recovery is this very high unemployment rate,” said Ben Westmore, a minerals and energy economist at National Australia Bank Ltd. in Melbourne, who predicts oil in New York will average $113 a barrel in the third quarter. “It dims the outlook on the second half of the year for demand.”

Crude for August delivery fell as much as 47 cents to $95.73 a barrel in electronic trading on the New York Mercantile Exchange, and was at $95.91 at 10:50 a.m. Sydney time. The contract dropped $2.47, or 2.5 percent, to $96.20 on July 8. Prices are 28 percent higher the past year.

Brent oil for August settlement was at $118.18 a barrel, down 15 cents, on the London-based ICE Futures Europe exchange. The European benchmark contract was at a premium of $22.11 to U.S. futures. The difference reached a record $22.29 on June 15.

U.S. payrolls increased by 18,000 in June, the Labor Department data showed. The median estimate in a Bloomberg News survey called for a gain of 105,000. A Commerce Department report on July 14 may show an unchanged reading in purchases in June after a 0.2 percent May decrease, according to the median forecast in a Bloomberg News survey.