Rubber market on Aug 10: Spot rubber stays steady

Rubber market on Aug 10: Spot rubber stays steady
August 10, 2011





KOTTAYAM, AUG. 10:
Spot rubber closed unchanged on Wednesday. The market lost its direction as sellers stayed back following the marginal improvement in the domestic and international futures. There were signs of recovery across the board as the US Federal Reserve assured that it would maintain the benchmark interest rate at record low level of 0.25 per cent at least till mid-2013. The transactions were dull.

According to traders, sheet rubber closed flat at Rs 204 a kg amidst scattered transactions. The grade finished unchanged at Rs 203.50 a kg both at Kottayam and Kochi, as quoted by the Rubber Board.

RSS 4 improved with the August series rising to Rs 206 (204.37), September to Rs 204.10 (201.36), October to Rs 204.30 (201.26), November to Rs 204.50 (201.60), December to Rs 204.70 (202.85) and January to Rs 207.50 (203.87) a kg on the National Multi Commodity Exchange.

RSS 3 (spot) weakened to Rs 209.93 (212.10) a kg at Bangkok. The August futures recovered partially to ¥352 (Rs 207.81) from ¥349.8 a kg during the day session and then to ¥356.2 (Rs 210.35) in the night session on the Tokyo Commodity Exchange.

Spot rates were (Rs/kg): RSS-4: 204 (204); RSS-5: 200 (200); ungraded: 192 (192); ISNR 20: 203 (203) and latex 60 per cent: 132 (132).





Tokyo futures fall on renewed econ worries (Aug 11)
August 11, 2011





TOKYO, Aug 11 (Reuters) – Key Tokyo rubber futures fell 1.1 per cent in early Asian trade on Thursday with the yen strengthening and oil falling on renewed worries about the economic outlook in Europe and the United States.

FUNDAMENTALS

* The key Tokyo Commodity Exchange rubber contract for January delivery <0#2JRU:> was down 3.9 yen at 355.1 yen per kg as of 0035 GMT.

* The most active rubber contract on the Shanghai commodity exchange rose 245 yuan to finish at 33,030 yuan ($5,136) per tonne on Wednesday.

* The yen traded at 76.77 yen , not far from an all-time high around 76.25 as the Japanese unit and Swiss franc remained buoyed on worries about the euro zone sovereign debt crisis spreading to the European and U.S. banking sectors.

* Oil fell more than $1 in early trade on Thursday, reversing the previous session’s gains.

* For the top stories in rubber markets and other news, click , or

MARKET NEWS

* The Nikkei average resumed falling on Thursday following a rebound the day before, after rumours about the health of French banks re-ignited concerns over the euro zone’s debt crisis and sent U.S. stocks down more than 4 percent.

* Car sales in China climbed 6.7 percent in July from a year earlier, extending a pattern of subdued growth in the world’s largest auto market as the weak auto selling season kicks in.

* Car sales in India fell 15.8 percent in July, the first drop in two-and-half years, and higher interest rates and rising vehicle costs are expected to keep demand subdued for the next few months.








Tokyo futures higher; econ worries limit gains (Aug 11)
August 11, 2011





BANGKOK, Aug 11 (Reuters) – Tokyo rubber future ended higher on Thursday as players took speculative buying positions after recent sharp falls, but gains were limited by falling oil prices and worries about the global economic outlook, dealers said.

The benchmark rubber contract on the Tokyo Commodity Exchange <0#JRU:> for January delivery rose 5.0 yen to settle at 364.0 yen ($4.75) per kg.

It rose to an intra-day high of 368.0 yen before profit-taking set in.

The most active rubber contract on the Shanghai commodity exchange for January delivery rose 1,140 yuan to finish at 34,140 yuan ($5,319) per tonne.

“TOCOM prices had fallen to levels that were quite cheap, encouraging players to take speculative buying positions, but there are several negative factors that prevent prices from rising further, including weaker oil prices,” one dealer said.

Brent slipped on Thursday, reversing the previous session’s gain of 4 percent, due to worries over demand as the European debt crisis spilled over to France.

On Tuesday, TOCOM rubber fell as much as 6 percent to a one-month low on a broad sell-off due to fears of a global economic recession. Prices rebounded slightly on Wednesday.

“With speculative buying, the prospect of rising supply and volatile oil prices, I expected TOCOM prices to be trapped in a narrow range for a few days,” said another trader at Thailand’s Hat Yai rubber centre.

Dealers expected TOCOM to find strong support at 360 yen per kg, while resistance was seen at 370 yen.