Market on Jan 5: Spot rubber drops on buyer resistance

Market on Jan 5: Spot rubber drops on buyer resistance
January 5, 2012





KOTTAYAM, JAN. 5:

Spot rubber declined on Thursday. According to observers, the prices fell sharply on buyer resistance following the weak trend on NMCE. There was visible selling from dealers and certain growers and the sentiments were still bearish. The gap between the domestic and international markets was wide enough to trigger another selling spree, an analyst toldBusiness Line. The trend was mixed.

Sheet rubber moved down to Rs 192.50 (195.00) a kg according to traders. The grade fell to Rs 194.50 (195.50) a kg both at Kottayam and Kochi as reported by the Rubber Board.

The January series dropped to Rs 193.50 (195.60), February to Rs 196.50 (198.04), March to Rs 200.99 (202.10), April to Rs 206.00 (207.50) and May to Rs 209.85 (211.52) while the June series improved to Rs 208.10 (207.50) a kg for RSS 4 on National Multi Commodity Exchange (NMCE).

RSS 3 (spot) weakened to Rs 177.68 (178.31) a kg at Bangkok. The January futures increased to ¥ 250.0 (Rs. 172.33) from ¥ 247.5 a kg during the day session and then slipped to ¥ 248.0 (Rs. 170.95) in the night session on Tokyo Commodity Exchange (TOCOM).

The physical rubber rates/kg were RSS-4: 192.50 (195.00); RSS-5: 187.00 (190.00); Ungraded: 180.00 (182.00); ISNR 20: 186.00 (186.00) and Latex 60 per cent: 108.00 (108.00).






Rubber Rebounds as Slump Spurs Buying Amid Thai Supply Concern
January 6, 2012




Rubber gained as a drop to near a six-week low lured buyers amid speculation that supply from Thailand, the largest exporter, may be disrupted because of heavy rains and flooding.

June-delivery rubber added as much as 0.6 percent to 269.6 yen a kilogram ($3,492 a metric ton) before trading at 269 yen on the Tokyo Commodity Exchange by 12:39 p.m. local time. The price yesterday dropped to 258.7 yen, the lowest since Nov. 24. It has gained 2.1 percent this week on signs of improvement in the U.S. economy, rebounding from a 4.7 percent drop last week.

Rain will increase in southern Thailand between Jan. 6-8 and may cause flash floods and landslides, the Department of Disaster Prevention and Mitigation said in a statement yesterday. Ten provinces in the southern region are flooded, it said. The south accounts for 80 percent of output.

“If floods cause disruption in rubber supply, that will boost prices as production is set for a seasonal decrease in coming months,” said Ken Kajisa, an analyst at broker ACE Koeki Co. inTokyo, said today by phone.

Production declines in Thailand during the so-called wintering season starting around February, when trees shed leaves and latex output slows. Users usually replenish rubber stockpiles before the low-production season begins, Kajisa said.

Gains were limited as investor appetite for riskier assets waned after higher borrowing costs in a French bond auction stoked concern Europe’s debt crisis is worsening. France sold 7.96 billion euros ($10.2 billion) of debt, with borrowing costs rising in its first bond auction of the year, as credit companies threaten to cut the nation’s AAA rating.

May-delivery rubber on the Shanghai Futures Exchange was little changed at 24,425 yuan ($3,873) a ton at 11:02 a.m. local time. The Thai cash price (THAISR3A) dropped 0.9 percent to 104.95 baht ($3.32) a kilogram yesterday, according to the Rubber Research Institute of Thailand.






Japan crude rubber stocks inch down
January 6, 2012





TOKYO, Jan 6 (Reuters) – Japan’s crude rubber inventories continued to decline by Dec. 20 after hitting a four-year high on Oct. 20, but still stayed at the highest level in nearly three months, the Rubber Trade Association of Japan said on Friday.

The stocks fell to 12,304 tonnes, down 3 percent from a month earlier and from 13,574 tonnes on Oct. 20, which was a four-year high.

The key TOCOM rubber futures market plunged to a two-year low of 248.6 yen per kg on Nov. 11 amid growing worries about the global economy. The contract slightly recovered but lingering concerns about the European debt crisis capped gains. The contract settled at 267.9 yen on Friday.





Tokyo futures flat, Euro crisis weighs
January 6, 2012





TOKYO, Jan 6 (Reuters) – Key Tokyo rubber futures were little changed on Friday in thin trade with investors nervous over the euro zone debt crisis and steering clear of risk assets.

The key Tokyo Commodity Exchange rubber contract for June delivery <0#2JRU:> settled down 0.2 yen at 267.9 yen per kg.

The most active Shanghai rubber contract for May delivery closed at 24,610 yuan ($3,900) per tonne, down from 24,420 yuan on Thursday.

“The market is dull, with investors staying away from risk assets,” said Takashi Ono, an analyst at trading house Dai-Ichi Shohin. But higher oil prices and a seasonal decline in supply may prompt investors to return to the market toward March, he said.

Brent crude was flat at about $113 a barrel on Friday as unabated euro zone debt woes and a surprise build in U.S. oil stockpiles tempered gains from supply disruption fears on mounting tensions between Iran and the West.

The yen was steady at 77.15 yen to the dollar.