Spot rubber improves on lack of sellers

Spot rubber improves on lack of sellers


KOTTAYAM, JULY 6:
Physical rubber prices scaled further highs on Wednesday. Supply concerns following the resumption of rain and the absence of quantity sellers continued to strengthen the market. There was no buying pressure from major consuming industries.

However, rising domestic rubber production, slowdown in auto sales, widening gap between the domestic and international prices and increased use of rain guards may limit future gains, analysts said. Sheet rubber firmed up to Rs 217 (215) a kg, according to traders. The grade improved to Rs 216.50 (214.50) a kg both at Kottayam and Kochi, according to the Rubber Board.

The July series closed at Rs 213.80 (213.73), August at Rs 216.15 (216.82), September at Rs 215 (214.61), October at Rs 215.56 (215.45), November at Rs 218.80 (220.90) and December at Rs 219.71 (219.20) a kg on the National Multi Commodity Exchange.

RSS 3 increased to Rs 213.36 (211.54) a kg at Bangkok. The July futures moved up to ¥391.7 (Rs 214.85) from ¥383.1 a kg during the day session on the Tokyo Commodity Exchange.

Spot rates were (Rs/kg): RSS-4: 217 (215); RSS-5: 214 (212); ungraded: 210 (209); ISNR 20: 212 (211) and latex 60 per cent: 137 (136).

Keywords: rubber






RUBBER-Tokyo futures rise, firmer commodities support (July 6)
July 6, 2011




TOKYO, July 6 (Reuters) – Key Tokyo rubber futures rose on Wednesday, supported by other commodities markets which rallied the day before on views a second-quarter slump was overdone, but trading was expected to be rangebound given a lack of fresh incentives.

FUNDAMENTALS

* The key Tokyo Commodity Exchange rubber contract for December delivery <0#2JRU:> rose 4.7 yen, or 1.2 percent, to 381.1 yen per kg as of 0017 GMT.

* The most active Shanghai rubber contract for January delivery closed at 33,765 yuan per tonne on Tuesday, up from Monday’s close at 33,480 yuan. Volume stood at 607,720 lots.

* U.S. crude futures extended gains on Wednesday, edging closer to a three-week intraday high marked the previous day, as investors awaited key industry data expected to show a decline in U.S. crude inventories.

* The euro stayed on the back foot in Asia on Wednesday, having suffered a steep fall against the Swiss franc and the dollar after Moody’s slashed Portugal’s credit rating to junk status.

* For top stories on the rubber market and other news, click , or

MARKET NEWS

* Toyota Motor Corp will return to unrestricted production in October, one month earlier than expected, as the last of the disrupted parts after the earthquake get restored, the Asahi newspaper reported on Wednesday, citing the company.

* French auto maker Renault’s worldwide vehicle sales will be better in the second half of the year than in the first half, its new chief operating officer, Carlos Tavares, said on Tuesday.

* European services growth slowed in June in the face of sluggish new orders and rising interest rates, giving firms less optimism about the year ahead, business surveys showed on Tuesday.

* Moody’s on Tuesday cut Portugal’s credit standing to junk in the first such move by a ratings agency and warned the country may well need a second round of rescue funds before it can return to capital markets.

* The Nikkei stock average posted gains for a seventh consecutive day on Wednesday.

* U.S. stocks ended a thinly traded session mostly flat on Tuesday as investors paused after last week’s surge, though continually light volume suggested the market could encounter more choppy trading.




NYMEX-Crude extends gains ahead of key data
July 6, 2011




TOKYO, July 6 (Reuters) – U.S. crude futures extended gains on Wednesday, edging closer to a three-week intraday high marked the previous day, as investors awaited key industry data expected to show a decline in U.S. crude inventories.

Oil also got support from an upgraded price forecast from Barclays Capital and upbeat U.S. factory orders.

FUNDAMENTALS

* NYMEX crude for August delivery was up 16 cents at $97.05 a barrel by 2340 GMT, after settling up $1.95 at $96.89 on Tuesday.

The contract hit $97.48 on Tuesday, the highest for front-month NYMEX crude since June 15.

* London Brent crude for August delivery was as yet untraded, after settling up $2.22 at $113.61, the highest since June 22.

* Barclays Capital raised its 2012 forecast for Brent by $10 to $115 per barrel, and upgraded its 2012 forecast for U.S. crude by $4 to $110. The bank left its Brent forecast for 2011 at $112 but cut its U.S. crude 2011 forecast by $6 to $100.

* Brent will fall to $90 a barrel by September because of the International Energy Agency’s move to release oil reserves and an increase in Saudi Arabia’s production, before bouncing for the longer term, Citigroup said.

* Exxon Mobil Corp does not have a definite repair plan yet for the ruptured Montana crude oil pipeline that it shut over the weekend, and company and government officials are still trying to determine the cause of the spill, a top executive said on Tuesday.

* The market awaited the release of key weekly data by the American Petroleum Institute later in the day.

A Reuters poll of analysts forecast that domestic crude stocks fell 2.3 million barrels in the week to July 1.

Distillate stocks were forecast up 600,000 barrels while gasoline inventories were projected to have been little changed from the week to June 24.

* The Commodity Futures Trading Commission released data on Tuesday for commodities including soybeans, cattle and crude oil showing changes in traders’ positions since the beginning of 2009.

“The data shows that, in many cases, less than 20 percent of average daily trading volume results in traders changing their net long or net short all-futures- combined positions,” said Gary Gensler, the head of the futures regulator.

MARKETS NEWS

* U.S. stocks ended a thinly traded session mostly flat on Tuesday as investors paused after last week’s surge, though continually light volume suggested the market could encounter more choppy trading.

The Nasdaq closed higher for its sixth straight day, helped by strength in Netflix, while the Dow and the S&P 500 ended five-day streaks that marked the best week for equities in two years.

* The euro fell against the dollar and the Swiss franc on Tuesday, snapping six straight days of gains, after Moody’s cut Portugal’s credit rating to junk.






India’s rubber marrket news: July 5, 2011
July 6, 2011




Rubber yesterday traded with the negative node and settled -0.37% down at 21340 as rising domestic rubber production, slowing auto sales, widening spread between the domestic and international rubber prices, increased use of rain guards weighed on prices. Japan crude rubber inventories declined eight per cent to its lowest in about five months.

Rubber inventories by June 20was at 6845 tonnes from ten days before. In yesterday’s trading session Rubber has touched the low of 21261 after opening at 21050, and finally settled at 21340. For today’s session market is looking to take support at 21188, a break below could see a test of 21037 and where as resistance is now likely to be seen at 21564, a move above could see prices testing 21789.