Tokyo futures at 3-month low on Fed’s warning (Sept 22)

Tokyo futures at 3-month low on Fed’s warning (Sept 22)
Written by HMH | September 22, 2011 | 0 |





BANGKOK, Sept 22 (Reuters) – Tokyo rubber futures tumbled 3.8 percent to the lowest in nearly three months on Thursday, tracking falls in stocks and other commodities after the U.S. Federal Reserve gave a gloomy assessment of the world’s biggest economy, dealers said.

The benchmark rubber contract on the Tokyo Commodity Exchange <0#JRU:> for February delivery fell 10.8 yen to settle at 342.5 yen ($4.48) per kg.

It fell as low as 3.8 percent to 340.0 yen, the lowest since June 28.

The most active rubber contract on the Shanghai commodity exchange for January delivery fell 1,660 yuan to finish at 30,400 yuan ($4,763) per tonne.

“Players sold contracts heavily due to fears of falling demand after the Fed warned of possible risks to the U.S. economy,” one dealer said.

The Federal Reserve warned on Wednesday of significant risks to the already weak U.S. economy and launched a new plan to lower long-term borrowing costs and bolster the housing market.

Oil prices fell by more than $2 a barrel on Thursday on concern that measures announced by the Fed would be insufficient to boost growth, with U.S. crude futures trading down at $83.88 a barrel.

Some dealers said TOCOM could rebound next week after prices found support at 340 yen per kg.

Tokyo rubber futures will not trade on Friday because of a public holiday. Trading will resume on Monday.






China: Tire busy pre-holiday preparation
Written by HMH | September 22, 2011 | 0 |





“This week, the domestic natural rubber prices is weak, we have also just bought some raw materials.” A tire purchasing department official told reporters that the falling price of natural rubber period, spot prices have also been relaxed, while close to 11 holiday, company’s recent purchase is produced in advance for holiday stocking plan.

The reporter found a similar idea with the tire apparently not unusual. A senior industry sources confirmed to the Futures Daily News reporter, on Tuesday ( 20 days) appeared after the collapse of the domestic rubber futures, spot market buying low active again, some tire companies began to market procurement of raw materials, market sentiment has weakened .

Clearly, the tire company’s replenishment period behavior of the spot price of natural rubber to form support. 21 days, the rubber on the main stage 1201 contract out of the V word inversion market. In the spot market, the tire 20 Symbol rubber prices edged up, watching mostly downstream, purchase intention is not strong.

“Stock up before the National Day holiday is a tire habit of action.” China International Futures analyst Chen column that usually entering the fourth quarter, the domestic auto sales will usher in the season, the tire manufacturer will expand the demand for natural rubber raw materials in advance stocking is also a matter of course.

Ningbo Shanshan property manager of the rubber trade to pay soldiers, said that eight months since, in terms of domestic sales or exports, the domestic tire industry, the situation is better than the previous 6 , 7 months. Downstream demand of raw materials also support the formation of natural rubber prices, which is relatively strong recent spot price reasons.

Tire industry, the National Day holiday seems to be “a hurdle.” On the one hand, entering the fourth quarter after the season exciting, but on the other hand, natural rubber prices ups and downs and make it difficult to let go.

“Right now many are fallen dares to buy, but will not chase the strong.” Chen told reporters that the columns of the daily futures, downstream firms became more cautious attitude is a major concern of macroeconomic uncertainty. Right now the debt crisis and bailout policies of the new trends, the Federal Reserve meeting on interest rates is still unknown resolution, downstream firms make inventory will be very cautious. In addition, bank credit is more difficult now, the downstream business is still relatively tight financial situation, which also restricted the tire size enterprises make up the library.

“Despite the current market trend is not clear, but the tire companies should consider buying auction.” The senior industry sources believe that this year, natural rubber prices remain high and volatile, the domestic tire industry generally lower raw material inventory levels, replenishment of the inner power is strong. At the same time, having gone through a rose, natural rubber prices have been significantly on the central shift, now the price range for the tire industry’s ability to accept increasing. In addition, 9 - 10 months to supply off-season, spending season, calendar year prices on the strong side, the proposed downstream producers bargain hunters.





Market on Sept 21: Mixed trend in spot rubber
Written by HMH | September 22, 2011 | 0 |





KOTTAYAM, SEPT. 21:
Spot rubber saw a mixed trend on Wednesday. While limited supplies and fall in production due to persistent rain provided firm support to prices, uncertainties in the economic outlook, slowdown in auto sales and rising interest rates and fuel costs exerted pressure on the demand. Apart from that, with rupee sliding into a two-year low against the dollar, import prospects might diminish further, analysts said.

Sheet rubber improved to Rs 217.50 (216.50) a kg, according to trades. The grade increased to Rs 217 (216) a kg both at Kottayam and Kochi, as quoted by the Rubber Board.

The October series closed at Rs 218.10 (218.05), November at Rs 216.74 (216.84), December at Rs 217 (216.85), January at Rs 219.21 (219.89), February at Rs 219.25 (219.56) and March at Rs 222.10 (219.98) a kg for RSS 4 on the National Multi Commodity Exchange.

RSS 3 (spot) weakened to Rs 222.66 (223.51) a kg at Bangkok. The September futures for the grade slipped to ¥343 (Rs 216.60) from ¥344 a kg during the day session but then bounced back to ¥345 (Rs 217.86) a kg in the night session on the Tokyo Commodity Exchange.

Spot rates were (Rs/kg): RSS-4: 217.50 (216.50); RSS-5: 210 (209); ungraded: 205 (203); ISNR 20: 210 (210) and latex 60 per cent: 134.50 (134.50).

Source: http://www.thehindubusinessline.com/industry-and-economy/agri-biz/article2473508.ece






China August Natural Rubber Imports Up 26% At 200,190 Tons
Written by HMH | September 22, 2011 | 0 |





SHANGHAI, Sep 21, 2011 (Dow Jones Commodities News Select via Comtex) –China’s natural rubber imports in August rose 26% compared with the same month last year, to 200,190 metric tons, the General Administration of Customs said Wednesday.

Imports were up 53% from July, when 130,451 tons were shipped in, the data showed.

In the January-August period, imports increased 5.5% on year to 1.21 million tons.

China is the world’s biggest importer of natural rubber and sources most of its supplies from Thailand, Indonesia and Malaysia, the world’s top producers.