Tokyo futures lower, demand concerns weigh

Tokyo futures lower, demand concerns weigh
November 1, 2011





TOKYO, Nov 1 (Reuters) – Key Tokyo rubber futures fell 2.4 percent early on Tuesday, pulled lower by declines in oil and share prices, while worries that the floods in Thailand will cut demand also weighed on the market.

FUNDAMENTALS

* The key Tokyo Commodity Exchange rubber contract for April delivery was down 7.2 yen at 300.7 yen as of 0045 GMT.

* On Monday, the most-active rubber contract on the Shanghai futures exchange for January delivery was down 710 yuan to finish at 27,105 yuan ($4,262) per tonne.

* Oil prices slipped in low-volume trading on Monday, but posted big monthly gains, as the dollar rose against the yen after Japan intervened in the market to stem the rise of its currency.

* The dollar stood at 78.46 yen , having risen as far as 79.55 on Monday in the wake of a record one-day intervention estimated by some market players to be anything from $90 billion to $130 billion.

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

MARKET NEWS

* U.S. auto sales in October are expected to have hit the highest rate in at least eight months, helped by pent-up demand from consumers trading in ageing vehicles and a wider selection of Honda and Toyota brand cars and trucks.

* Honda Motor Co on Monday withdrew its forecast for its annual global car sales amid an indefinite suspension of work at its flooded Thai factory.

* Thailand hopes industrial estates swamped in its worst floods in half a century can be up and running within three months, the prime minister said on Monday, as the centre of the capital finally appeared to have escaped a similar fate.

* Japan’s Nikkei share average fell on Tuesday after Wall Street stocks tumbled on the failure of trading firm MF Global Holdings and fresh worries about Europe after the Greek Prime Minister called an unexpected referendum on aid to his country.







Spot rubber rules steady
Written by HMH | October 31, 2011 | 0 |





KOTTAYAM, OCT. 31:

Physical rubber prices finished unchanged on Monday. Market activities were low and it lost direction lacking active market participants on either side. Meanwhile, widespread rain disrupted tapping in major plantation areas.

Sheet rubber closed steady at Rs 212 a kg, according to traders. The grade slipped to Rs 212 (212.50) a kg both at Kottayam and Kochi, as reported by the Rubber Board.

The November series improved marginally to Rs 213.70 (212.81) December to Rs 213.34 (212.51), January to Rs 214.03 (213.43) and February to Rs 214.28 (213.81) a kg for RSS 4 on the National Multi Commodity Exchange.

RSS 3 (spot) weakened to Rs 196.37 (198.37) a kg at Bangkok. The November futures for the grade dropped to ¥301.2 (Rs 188.48) from ¥306.2 a kg on the Tokyo Commodity Exchange.

Spot rates were (Rs/kg): RSS-4: 212 (212); RSS-5: 210 (210); ungraded: 202 (202); ISNR 20: 200 (200) and latex 60 per cent: 128.50 (128.50).






India: Rubber dealers to seek limit on futures price volatility
Written by HMH | October 30, 2011 | 0 |





MUMBAI/KOCHI: Kerala’s rubber dealers will urge food minister KV Thomas to impose strict limits on price swings of rubber futures contracts traded on Ahmedabadbased National Multi Commodity Exchange (NMCE), the benchmark bourse for the product, on grounds that sharp price moves were threatening their existence.

The Rubber Dealers Association will air its concerns about how “high volatility” in rubber futures has hit them at a meeting with Thomas, Kerala CM Oommen Chandy, secretary to the consumer affairs ministry Rajeev Agarwal, FMC chairman Ramesh Abhishek and NMCE CEO Anil Mishra in Thiruvananthapuram on November 9.

FMC regulates the commodity futures market and reports to the ministry of consumer affairs, food and public distribution, which Thomas heads. “There have been complaints of high volatility in rubber contracts traded on the futures exchange…..we will shortly be taking stock of the situation at a meeting to be held shortly. This will be attended by the consumer affairs secretary and FMC chairman,” Thomas told ET.

The association’s demand is to limit volatility (price swings either way) to 1% daily in rubber futures trade from the current 3%+1%, to allow transactions only against delivery in the current month contracts and if possible let out the names of sellers and buyers of the contracts. Rubber futures traded here take cues from Tokyo Commodity Exchange. But Rubber Dealers Association president George Valy says the nation’s futures market is not as mature as that of Japan’s.