Rubber prices close lower due to mild buying interest
May 25, 2012
KUALA LUMPUR, May 25 — Rubber prices in the local rubber market continued to trade lower today due to mild buying support, dealers said. They said the demand for commodities globally were hampered by continued wariness about the eurozone debt saga.
“Despite the current tight rubber supply, local traders were still hesitant to take any major move although the benchmark Tokyo rubber contract managed to edge higher today,” they said.
At noon, the Malaysian Rubber Board’s official physical price for tyre-grade SMR 20 lost 11 sen to 1,000.5 sen a kg while latex-in-bulk slipped four sen to 717.5 sen a kg.
The unofficial closing price for tyre-grade SMR 20 shed five sen to 998.0 sen a kg and latex-in-bulk slid two sen to 716.5 sen a kg.
Market on May 25: Traders avoid taking position in rubber futures
May 25, 2012
KOTTAYAM, MAY 25:
Physical rubber prices closed almost steady on Friday. According to observers, market activities were extremely slow. Traders seemed to be hesitant to take fresh positions though the domestic futures ended marginally higher on the National Multi Commodity Exchange (NMCE). The trend was partially mixed as latex improved on comparatively better demand.
Sheet rubber closed unchanged at Rs 193.25 a kg, as quoted by traders. The grade was flat at Rs 193.50 a kg both at Kottayam and Kochi, according to the Rubber Board.
The June series improved to Rs 194.10 (193.75), July to Rs 197 (196.58) and August to Rs 197.49 (196.62), while September series dropped to Rs 195.01 (196.50) a kg for RSS 4 on the NMCE.
The TOCOM rubber futures edged lower on profit booking at higher levels. RSS 3 (spot) improved to Rs 207.23 (206.41) a kg at Bangkok. The May contract expired weak at ¥265 (Rs 184.54) a kg, while the June futures slipped to ¥263.4 (Rs 183.40) from ¥266.6 a kg on the Tokyo Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 193.25 (193.25); RSS-5: 192 (192); ungraded: 188 (188); ISNR 20: 193 (193) and latex 60 per cent: 125.50 (125).
Saturday, May 26, 2012
Saturday, May 19, 2012
Tokyo futures fall on euro zone uncertainty
Tokyo futures fall on euro zone uncertainty
May 18, 2012
TOKYO, May 18 (Reuters) - Tokyo rubber futures fell 1.4 percent on Friday, under pressure from a strong yen and concerns that the euro zone political and economic crisis will sap demand, and posted a 4.8 percent decline on the week.
Investors continued to avoid riskier assets on fears that Greece would leave the euro and after financial instability increased in Spain after a downgrade of 16 Spanish banks by Moody’s on Thursday.
The benchmark rubber contract on the Tokyo Commodity Exchange for October delivery settled Friday at 269.9 yen per kg, down 3.7 yen or 1.4 percent from the previous close.
“The TOCOM market will have limited room in the upside unless some stability is back to Greece, the core of the market’s current concerns,” said a trader at a Japanese commodity brokerage.
The trader said he expects a price range of between 263 and 275 yen for next week unless there is any change in fundamental factors.
The key October contract earlier this week touched a low of 261.5 yen, the lowest since Jan. 5.
But it stopped falling at 266.1 yen on Friday as bargain hunting emerged on expectations the Thai government would eventually intervene to support prices, traders said.
Thailand began to fully implement an intervention scheme in mid-May, aiming to push the price of unsmoked sheet, which farmers to sell factories, to 120 baht per kg.
The most-active rubber contract on the Shanghai rubber exchange for September delivery closed down 355 yuan at 24,090 yuan per tonne.
The front-month June rubber contract on Singapore’s SICOM exchange was last traded unchanged at 331.40 U.S. cents per kg.
May 18, 2012
TOKYO, May 18 (Reuters) - Tokyo rubber futures fell 1.4 percent on Friday, under pressure from a strong yen and concerns that the euro zone political and economic crisis will sap demand, and posted a 4.8 percent decline on the week.
Investors continued to avoid riskier assets on fears that Greece would leave the euro and after financial instability increased in Spain after a downgrade of 16 Spanish banks by Moody’s on Thursday.
The benchmark rubber contract on the Tokyo Commodity Exchange for October delivery settled Friday at 269.9 yen per kg, down 3.7 yen or 1.4 percent from the previous close.
“The TOCOM market will have limited room in the upside unless some stability is back to Greece, the core of the market’s current concerns,” said a trader at a Japanese commodity brokerage.
The trader said he expects a price range of between 263 and 275 yen for next week unless there is any change in fundamental factors.
The key October contract earlier this week touched a low of 261.5 yen, the lowest since Jan. 5.
But it stopped falling at 266.1 yen on Friday as bargain hunting emerged on expectations the Thai government would eventually intervene to support prices, traders said.
Thailand began to fully implement an intervention scheme in mid-May, aiming to push the price of unsmoked sheet, which farmers to sell factories, to 120 baht per kg.
The most-active rubber contract on the Shanghai rubber exchange for September delivery closed down 355 yuan at 24,090 yuan per tonne.
The front-month June rubber contract on Singapore’s SICOM exchange was last traded unchanged at 331.40 U.S. cents per kg.
Wednesday, May 16, 2012
Rubber Plunges to a Four-Month Low on Greek Impasse
Rubber Plunges to a Four-Month Low on Greek Impasse
May 15, 2012
Rubber plunged to a four-month low as the political impasse in Greece raised speculation the nation may leave the euro, deepening an economic slump in the region and weakening demand for the commodity used in tires.
October-delivery rubber slumped as much as 5.1 percent to 265 yen a kilogram ($3,317 a metric ton), the lowest level for a most-active contract since Jan. 6, before trading at 268 yen on the Tokyo Commodity Exchange at 10:15 a.m. local time. Prices have trimmed this year’s advance to 1.7 percent.
The euro fell to an almost four-month low before a report forecast to show Europe’s economy contracted. Doubts mounted Greece can avoid an exit from the currency union as the region’s finance ministers meet for a second day in Brussels. Greece’s President will call a meeting of leaders of all parliamentary parties except for an ultra-nationalist party today to make the case for a government of prominent non-politicians.
“The European turmoil raised concerns the Chinese economic slowdown may worsen as the region is the biggest export market for China,” Ken Kajisa, an analyst at broker ACE Koeki Co. in Tokyo, said today by phone. China, the world’s largest auto market, is also the biggest rubber user.
China’s slowdown may deepen as policy makers unwind the excesses of a record credit boom while only gradually increasing stimulus, leaving 2012 growth at the weakest in 13 years, according to Pacific Investment Management Co.
Passenger-vehicle sales rose 1.9 percent in the first four months of the year, according to the China Association of Automobile Manufacturers. Auto demand rose 32 percent in 2010 after the government introduced subsidies and rebates to encourage buying, before slowing to 2.5 percent last year.
September-delivery rubber on the Shanghai Futures Exchange lost 2.4 percent to 24,270 yuan ($3,839) a ton at 9:23 a.m. local time. Thai rubber on a free-on-board basis dropped 0.6 percent to 117.25 baht ($3.74) a kilogram yesterday, according to the Rubber Research Institute of Thailand.
Tokyo futures hit 4-mth low as investors avoid risk (May 15)
May 15, 2012
TOKYO, May 15 (Reuters) – Tokyo rubber futures fell to a new four-month low on Tuesday as investors turned risk averse after a political impasse in Greece fanned the chance of a further rise in the yen currency and fed concerns about faltering demand for the industrial commodity.
The benchmark rubber contract on the Tokyo Commodity Exchange for October delivery settled at 270.1 yen per kg, down 9.1 yen from the previous close.
It earlier touched an intraday low of 265 yen, the lowest since Jan. 6.
“If the debt crises worsens in the euro zone and if the dollar falls clearly below 80 yen, that would put a further pressure on the Tokyo market,” said Naoki Asami, chief broker at trading house Kanetsu.
The dollar hovered at around 79.90 yen, above a 2-1/2-month low of 79.428 yen hit last week. A weaker dollar curbs yen-denominated TOCOM rubber prices even if dollar-based rubber prices in producing countries stay unchanged.
Some speculators who started building short positions this week seemed to bet on a further fall in the TOCOM market to 260 yen per kg and below, traders said, paving the way for a test of a November trough below 250 yen.
“The weak momentum in bargain-hunting suggests a higher chance of a downtrend. If the market breaks through below 260 yen, the next target would be 250 yen,” Asami said.
The most-active rubber contract on the Shanghai rubber exchange for September delivery closed down 390 yuan at 24,685 yuan per tonne.
The front-month June rubber contract on Singapore’s SICOM exchange was last traded at 332.0 U.S. cents per kg, down 0.9 cents.
May 15, 2012
Rubber plunged to a four-month low as the political impasse in Greece raised speculation the nation may leave the euro, deepening an economic slump in the region and weakening demand for the commodity used in tires.
October-delivery rubber slumped as much as 5.1 percent to 265 yen a kilogram ($3,317 a metric ton), the lowest level for a most-active contract since Jan. 6, before trading at 268 yen on the Tokyo Commodity Exchange at 10:15 a.m. local time. Prices have trimmed this year’s advance to 1.7 percent.
The euro fell to an almost four-month low before a report forecast to show Europe’s economy contracted. Doubts mounted Greece can avoid an exit from the currency union as the region’s finance ministers meet for a second day in Brussels. Greece’s President will call a meeting of leaders of all parliamentary parties except for an ultra-nationalist party today to make the case for a government of prominent non-politicians.
“The European turmoil raised concerns the Chinese economic slowdown may worsen as the region is the biggest export market for China,” Ken Kajisa, an analyst at broker ACE Koeki Co. in Tokyo, said today by phone. China, the world’s largest auto market, is also the biggest rubber user.
China’s slowdown may deepen as policy makers unwind the excesses of a record credit boom while only gradually increasing stimulus, leaving 2012 growth at the weakest in 13 years, according to Pacific Investment Management Co.
Passenger-vehicle sales rose 1.9 percent in the first four months of the year, according to the China Association of Automobile Manufacturers. Auto demand rose 32 percent in 2010 after the government introduced subsidies and rebates to encourage buying, before slowing to 2.5 percent last year.
September-delivery rubber on the Shanghai Futures Exchange lost 2.4 percent to 24,270 yuan ($3,839) a ton at 9:23 a.m. local time. Thai rubber on a free-on-board basis dropped 0.6 percent to 117.25 baht ($3.74) a kilogram yesterday, according to the Rubber Research Institute of Thailand.
Tokyo futures hit 4-mth low as investors avoid risk (May 15)
May 15, 2012
TOKYO, May 15 (Reuters) – Tokyo rubber futures fell to a new four-month low on Tuesday as investors turned risk averse after a political impasse in Greece fanned the chance of a further rise in the yen currency and fed concerns about faltering demand for the industrial commodity.
The benchmark rubber contract on the Tokyo Commodity Exchange for October delivery settled at 270.1 yen per kg, down 9.1 yen from the previous close.
It earlier touched an intraday low of 265 yen, the lowest since Jan. 6.
“If the debt crises worsens in the euro zone and if the dollar falls clearly below 80 yen, that would put a further pressure on the Tokyo market,” said Naoki Asami, chief broker at trading house Kanetsu.
The dollar hovered at around 79.90 yen, above a 2-1/2-month low of 79.428 yen hit last week. A weaker dollar curbs yen-denominated TOCOM rubber prices even if dollar-based rubber prices in producing countries stay unchanged.
Some speculators who started building short positions this week seemed to bet on a further fall in the TOCOM market to 260 yen per kg and below, traders said, paving the way for a test of a November trough below 250 yen.
“The weak momentum in bargain-hunting suggests a higher chance of a downtrend. If the market breaks through below 260 yen, the next target would be 250 yen,” Asami said.
The most-active rubber contract on the Shanghai rubber exchange for September delivery closed down 390 yuan at 24,685 yuan per tonne.
The front-month June rubber contract on Singapore’s SICOM exchange was last traded at 332.0 U.S. cents per kg, down 0.9 cents.
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