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Rubber prices
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zhuge_liang
Supreme |
30-Nov-2006 22:55
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Tokyo rubber futures extended their gains on Thursday, hitting a two-week high on technical support from oil futures. But the benchmark contract failed to break the key resistance of 205.0 yen, the intra-day high, as profit taking limited gains, dealers said. The key rubber futures contract on the Tokyo Commodity Exchange ended at 202.0 yen per kg on, up 2.1 yen from Wednesday's close, or 8.9% above the one-year low of 185.5 yen hit on Nov. 24. "It's technical support from oil futures. I don't see any change on the fundamental side," a Japanese dealer said. Rubber prices often benefit from high crude oil prices because investors believe expensive oil will encourage a shift to natural rubber from synthetic rubber, a petroleum product. On the fundamental side, prices rose a little in line with the bullish trend on TOCOM, but they remained under pressure from ample supplies and increasing stocks in producing countries. Stocks were also ample in Japan, one of the world's main rubber consumers. Crude rubber stocks held at Japanese warehouses jumped 22% to 11,494 tonnes by Nov. 20 from 9,404 tonnes on Nov. 10, data from the Rubber Trade Association of Japan showed on Thursday. The latest stock level was the highest since July 10 and was up nearly 30% since reaching this year's low of 8,887 tonnes on Oct. 10. Rubber prices have been on a downward trend in the last several months due to ample physical supply conditions. Separately, the International Rubber Consortium, or ICRo, established by major producers Thailand, Indonesia and Malaysia, extended its planned one-day meeting in Bangkok to Friday, saying there was much to discuss on measures to prop up prices. Also discussed were export controls, managing supplies by replanting trees or IRCo stepping in to buy rubber and keep it in stock. When asked whether the group would announce any measures or take any action soon, Sang Udomjarumani, head of the group said: "I cannot say at this moment." Demand was thin, with Japanese stocks reported to have jumped 22% to 11,494 tonnes by Nov. 20 from 9,404 tonnes on Nov.10. |
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Nostradamus
Supreme |
30-Nov-2006 17:30
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Crude rubber stocks held at Japanese warehouses jumped 22% to 11,494 tonnes by Nov. 20 from 9,404 tonnes on Nov. 10, data from the Rubber Trade Association of Japan showed on Thursday. The latest stock level was the highest since July 10 and was up nearly 30% since reaching this year's low of 8,887 tonnes on Oct. 10. Rubber prices have been on a downward trend in the last several months due to ample physical supply conditions. Tokyo Commodity Exchange rubber futures, which set trends for global rubber prices, have been falling since summer. They were under additional pressure as Southeast Asia, the world's top rubber producing region, was in the peak production season, Tokyo traders said. On Nov. 24, the benchmark TOCOM contract fell to a fresh one-year low of 185.5 yen a kg, down more than 40% from a 26-year high of 324.5 yen reached on June 13. TOCOM rubber regained some strength by Thursday on short-covering following recent sharp declines. On Thursday, the distant May TOCOM contract closed up 2.1 yen or 1.05% at at 202.0 yen. |
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Nostradamus
Supreme |
29-Nov-2006 13:39
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Tokyo rubber futures rose to a one-week high on Wednesday morning, with the benchmark contract briefly exceeding 200 yen. But rubber futures on the Tokyo Commodity Exchange have been vulnerable to profit taking this week as the market faces strong resistance at that level. At 0327 GMT, the benchmark TOCOM rubber contract for May delivery was at 198.4 yen a kg, up 2.3 yen from Tuesday's close. It had risen as high as 200.1 yen, topping the key resistance level of 200 yen for the first time since Nov. 20, when it climbed as high as 200.3 yen. "Players covered short positions, but it's clear that prices succumbed to profit taking," a Japanese dealer said. Traders will be watching carefully to see if the market has the strength to remain above 200 yen, or fall on profit taking. The key contract tumbled to a one-year low of 185.5 yen on Nov. 24. The physical market was expected to continue to be amply supplied with the approach of the peak rubber production season. On the physical front, prices rose in line with TOCOM, while meetings in Thailand this week to discuss action to support prices also gave a psychological boost. Thai rubber exporters met Agricultural Ministry officials on Wednesday about help for farmers suffering from recent rubber prices falls. The International Rubber Consortium, or ICRo, established by major producers Thailand, Indonesia and Malaysia was due to meet on Thursday to discuss measures to support prices. But traders were doubtful whether the consortium would be able to act effectively. Chinese buyers, the world's largest consumer, have started to show some interest, offering to buy at around US$1.50 per kg, a little higher than last week's US$1.47, but no deal appears to have been done yet, traders said. |
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zhuge_liang
Supreme |
28-Nov-2006 12:48
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Tokyo rubber futures were steady and trading in narrow band on Tuesday morning, recovering from early losses seen after investors took profit from a rebound on Monday. Weak fundamentals and technical factors continued to weigh on rubber futures on the Tokyo Commodity Exchange, with the key contract near a one-year low hit on Friday. At 0400 GMT, the benchmark TOCOM rubber contract for May delivery was at 196.6 yen per kg, up 0.4 yen. "Profit taking was triggered when prices were close to 200 yen," a dealer said. "It's not easy for prices to stay above 200 yen, especially when they were under pressure from rising supply and that's why players rushed to take profit," another said. Tokyo rubber futures were expected to be traded in the narrow band of 185.0-200.0 yen, dominated by technical factors in the absence of change in fundamentals, traders said. The International Rubber Consortium, or IRCo, established by major producers Thailand, Indonesia and Malaysia, was due to meet in Bangkok on Thursday to talk about action to support prices, a senior official said. "It will be a one-day meeting and we will issue some measures," an IRCo official said. The market has been sceptical about IRCo's ability to affect prices. Demand remains thin although some traders say China, the world's largest consumer, could begin buying again if prices fall further. Traders said Chinese buyers were in the market after the recent falls in prices, but traders were reluctant to sell. "They come and check for prices, but no deal has been made yet," a trader in Thailand's Hat Yai rubber hub said. However, most physical rubber prices were up slightly on Tuesday as falls in prices attracted buyers. |
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shplayer
Elite |
27-Nov-2006 14:55
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This arrangement seems to veer off the original MOU whereby GMG will take a 51% stake in PTBJ for USD2.5m + USD1.0m for exclusive marketing rights. The deal is to be completed after due diligence is completed. Seems to me PTBJ does not have enough funds to complete the processing plant and need the money quick. What if, in the course of GMG due diligence, they decide that the project, for some reason, is not viable. Alternatively, PTBJ may have a change of heart and decide not to proceed with the JVA. In accordance to the Loan Agreement, PTBJ will repay the loan to GMG.........but where will the money come from? By then, it would have already been spent. Seems like there is a certain amount of risk by going along this path. It will be better to release the fund for the 51% equity only after due diligence is completed. .....just my personnal opinion. |
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zhuge_liang
Supreme |
27-Nov-2006 11:29
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It has extended a loan of US$2.5 mln to Indonesian natural rubber processing company PT Bumi Jaya under a MOU signed last month, to fund the building of its rubber processing factory. In return, PT Bumi Jaya will issue new shares to GMG, giving the latter a 51% stake of its total issued share capital. "This is in (GMG's) interest to meet its expansion plans in the region and is in line with the company's strategy to seek out business opportunities which have a strategic fit with its core activities," GMG said in a statement. |
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zhuge_liang
Supreme |
27-Nov-2006 10:56
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Tokyo rubber futures lost further ground on Monday, struggling near a one-year low amid ample physical supplies and bearish technical signals. The lead rubber futures contract on the Tokyo Commodity Exchange marked a one-year low on Friday in continued speculative selling, despite the threat of intervention by the JV International Rubber Consortium. The consortium established by the major producing nations of Thailand, Indonesia and Malaysia said it may need to step into the market to prevent rubber prices dropping further. But pressure continued to weigh on TOCOM rubber due to the market heading into the peak production season, while end-users were believed to have sufficient rubber supplies. At 0052 GMT, the new benchmark TOCOM rubber contract for May delivery, which debuted on Monday, was trading at 188.3 yen a kg. It briefly rose as high as 189.8 yen, but was soon pushed back by a wave of selling. On Friday, the then benchmark rubber contract for April delivery fell as low as 185.5 yen, the lowest for a key contract since November 2005, before closing at 187.3 yen, down 3.2 yen. Traders in Tokyo and in Thailand, the world's top rubber producer, said they were sceptical that the IRC would act on its words. There were few physical purchases as many buyers in Asia were waiting for further price declines, while China, the world's largest rubber consumer, was buying less natural rubber due to a shift to chemical products. Customs data showed Chinese natural rubber imports in October were around 130,000 tonnes, down about 23 percent month-on-month. |
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zhuge_liang
Supreme |
24-Nov-2006 11:32
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Asian physical rubber slipped on Friday following losses in Tokyo rubber futures, which fell by nearly 2% to a fresh one-year low on speculative selling pressure. Trade was sluggish with buyers reluctant to clinch deals, expecting the price to fall further amid rising supply in producing countries due to good dry weather, traders said. |
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zhuge_liang
Supreme |
23-Nov-2006 21:36
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The joint venture International Rubber Consortium, established by Thailand, Indonesia and Malaysia, may need to step into the market to prevent rubber prices dropping further, a senior official said on Thursday. "I think we have to do something," Sang Udomjarumani, head of the group known as IRCo, told Reuters by telephone from London where he attended a meeting. "If it keeps on going down like this, first thing, I am afraid that in Thailand, the farmer will protest for sure." Thailand, the world's top producer, Indonesia and Malaysia account for 72% of the world's natural rubber output and set up the group in 2004 to help support the market. It was not happy about current prices, Sang said. "The price now is a bit low. The rate of decline is rather alarming. We need to do something," he said. Thai benchmark unsmoked rubber sheet grade 3, or USS3, the raw material for export-grade rubber, has fallen about 20% in value so far this month to 46 baht a kg on Thursday. Thai USS3 hit an all-time high of 102 baht a kg in June when unusually wet weather disrupted tapping and reduced supply. IRCo would meet in Bangkok next week to discuss ways to stabilise rubber prices, Sang said. "I think the three countries must come together to decide. We can not decide unilaterally," he said. "We are ready to intervene in the market. We have three measures to undertake." "If the price keeps come down at an alarming speed like this, the first measure will be export control," by taking some supply from the market, Sang said. The second measure would involve managing supplies by cutting down trees or replanting, he said. "The second measure is a long-term measure, so the market will not be flooded with oversupply," he said. "The final measure will be SMO, we call it, strategic, market operation which means IRCo has to step in and buy the rubber in the market and keep in stock," Sang said. "We are ready to implement all the measures." |
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zhuge_liang
Supreme |
23-Nov-2006 18:53
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The benchmark April contract fell 3.5 yen a kg and closed at of 194.0. |
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Nostradamus
Supreme |
22-Nov-2006 16:52
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Tokyo rubber futures closed lower on Wednesday as traders adjusted positions ahead of a Japanese public holiday. The benchmark TOCOM rubber contract for April delivery ended down 3.5 yen a kg from Tuesday's close at 190.5 yen a kg. The benchmark April contract tumbled to a one-year low of 188.6 yen a kg at one point on Wednesday as selling intensified, before short covering pushed it back as high as 195.9 yen a kg, dealers said. "There was too much selling pressure because there is too much nearby rubber," a Singapore-based dealer said. "There is no place to sell it. There is no nearby offtake. I think a lot of overseas buyers have already bought." The underlying trend on Tokyo Commodity Exchange rubber futures remained bearish due to ample supply. Technical sentiment has also been bearish since the key distant contract fell below the closely watched 200 yen level last week. In the physical market, good weather in Southeast Asia is expected to bring more rubber onto the market in the next few days. "We were lucky to get one day's rain yesterday. The rain was good because it was getting too hot," a Thai dealer in the southern town of Hat Yai said. Ample supplies in producing countries due to good dry weather were expected to keep pressure on prices over the next few days, dealers said. Physical trade was thin with few deals done overnight as overseas buyers were still waiting for prices to drop further, dealers said. Physical trade was expected to remain sluggish on Thursday as both sellers and buyers waited for leads from the Tokyo Commodity Exchange, which sets trend for global rubber prices, when it resumed trading on Friday, dealers said. "For the physical trade tomorrow, it will be very quiet and the offer prices will remain unchanged or go lower," one said. |
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Nostradamus
Supreme |
22-Nov-2006 16:31
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Tokyo rubber futures fell to a one-year low on Wednesday morning, continuing losses over the last month as traders adjusted positions ahead of a Japanese public holiday. At 0345 GMT, the benchmark TOCOM rubber contract for April delivery was down 4.5 yen a kg at 189.6 yen a kg. "Some players liquidated their positions because we have a holiday tomorrow," a Japanese dealer in Tokyo said. Technical sentiment has been bearish since the benchmark contract fell below the closely watched 200-yen level last week, dealers said. April TOCOM rubber hit a low of 188.8 yen a kg on, the lowest for the benchmark contract since November 2005. It has fallen about 14% since the start of the month. Dealers said the market could drop further later in the day, under pressure from rising supply in producing countries and bearish sentiment. In early trade, firm crude oil prices encouraged traders to buy back rubber ahead of the holiday, dealers said. Traders watch the oil market closely as higher oil prices accelerate a shift in demand to natural rubber from synthetic rubber, a petrochemical product. Oil prices held steady just above US$60 a barrel on Wednesday, near their highest in two weeks, as a disruption to Alaskan crude exports dragged on and dealers braced for a likely decline in U.S. fuel stocks. On the physical rubber market, good weather in Southeast Asia is expected to bring more supply onto the market in the next few days, dealers said. "We were lucky to get one day's rain yesterday. The rain was good because it was getting too hot," a Thai dealer in the southern town of Hat Yai said. Ample supplies in producing countries due to good dry weather were expected to keep pressure on prices over the next few days, dealers said. Physical trade was thin with few deals done overnight as overseas buyers were still waiting for prices to drop further, dealers said. |
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zhuge_liang
Supreme |
20-Nov-2006 13:49
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Tokyo rubber futures stayed on the defensive on Monday after the benchmark contract dropped below key support at 200 yen a kg, with fundamentals remaining weak due to ample supplies in Southeast Asia. The Tokyo Commodity Exchange rubber contract for April hit a high of 200.3 yen per kg and was quoted at 198.9 yen by midday, down 0.5 yen from Friday's close. The contract tumbled more than 10% last week, falling to a low on Friday of 197.4 yen -- the lowest for a benchmark in almost a year -- on fund selling. On the physical front, dealers noted sales of Indonesia's tyre-grade SIR20 at 71.25 U.S. cents per pound free on board at Palembang port in South Sumatra for December shipments on Friday. January SIR20 was sold at 71.50 to 71.75 cents, while February and March rubber was traded at 72.00 cents. Chart watchers said the next support for the benchmark contract would be around 193 yen, the low reached on Nov. 22 last year. One Japanese trader added that China, a key rubber consumer, has not been buying as much physical rubber as expected, while Japanese buyers such as tyre makers were believed to have sufficient amounts of inventories. |
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zhuge_liang
Supreme |
20-Nov-2006 13:27
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Tyre-grade prices were mostly weaker in Asia on Monday as dealers waited for leads from Tokyo rubber futures, which have dropped below the psychological level of 200 yen per kg. Rising supplies in producing countries are putting pressure on prices in Southeast Asia. Buyers are in no rush to seal deals as they are expecting prices to fall further, dealers said. |
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Nostradamus
Supreme |
16-Nov-2006 23:03
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Tokyo rubber futures fell 2% on Thursday to near their lowest level in 7 weeks as bearish charts and expectations of a rise in supplies kept investors away. At 0324 GMT, key Tokyo Commodity Exchange rubber for April delivery was trading at 205.2 yen per kg, after hitting a session low of 204.6 yen, or 2% down from Wednesday's close. The technical trend was bearish, with the key contract trading about 3% below its 7-day ma of around 212 yen. Dealers said they expected the market to hit the low reached on Sept. 25. Traders said the market could find some technical support in the near term and rebound. But they were bearish over the long term outlook for prices. Buyers, including tyre makers, are hoping for supplies from key Southeast Asian producers to rise in coming weeks. Physical rubber prices also fell in line with TOCOM. But steady demand from tyre-makers and Chinese buyers restricted the fall, traders said. "It's not in big lots, but they keep buying," said a trader in Thailand, the world's biggest producer of rubber ahead of Indonesia and Malaysia. |
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Nostradamus
Supreme |
16-Nov-2006 12:09
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Most Asian physical rubber prices slipped on Thursday in line with falls on TOCOM. However, prices did not fall sharply and were cushioned by steady demand from tyre-makers and Chinese buyers, traders said. |
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Nostradamus
Supreme |
14-Nov-2006 18:48
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Apr futures fell 9.6 to close at 217.9 yen/kg. |
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Nostradamus
Supreme |
13-Nov-2006 21:23
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Apr futures fell -1.4 to close at 219.3 yen/kg. |
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Nostradamus
Supreme |
11-Nov-2006 19:14
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A favourable turn in weather, which is expected to enhance the latex production in a short span hammered spot rubber on Friday. The market is moving under the influence of domestic fundamentals than the global trends, an analyst told Business Line. This could be considered as a pre-production season phenomenon, he added. The market witnessed heavy losses in all grades as all major consuming industries refrained from trading. Sheet rubber fell sharply to Rs 86.00 from at Rs 88.00 a kg both at Kottayam and Kochi.
The rubber futures were visibly bearish though TOCOM finished the session in green. On NMCE, the November delivery contract ended at Rs 87.50 (Rs 88.99), December at Rs 80.35 (Rs 82.08), January at Rs 79.27 (Rs 80.64) and February at Rs 80.40 (Rs 81.86) per kg for RSS 4. Spot prices (Rs a kg) were: RSS-4: 86 (88); RSS-5: 83.50 (86); ungraded: 79.50 (81); ISNR 20: 83.50 (85.50) and latex 60 per cent: 58.95 (60).
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Nostradamus
Supreme |
10-Nov-2006 17:04
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Tokyo rubber futures hit a one-week high on Friday, buoyed by bullish sentiment in the bullion market following news of China's plan to diversify its foreign reserves. The benchmark April 2007 contract on the Tokyo Commodity Exchange, which sets trends for global rubber prices, settled at 219.3 yen per kg after hitting 219.8 yen, the benchmark's highest since Nov. 2. "It is because of gold," a Japanese trader said. On the physical front, prices were still under pressure from increasing supply due to favourable weather. In Thailand, there has been little rain in the south, the main growing area, for about three weeks even though the wet season began in early October and usually lasts until early December. However, there were reports of rain in parts of Malaysia, causing a drop in supply and pushing the price of Malaysian SMR20 higher than Thai RSS3. China came back into the market and asked to buy Thai RSS3 at $1.67-1.69 per kg, cost and freight, for prompt shipment, but traders were asking for around $1.70 per kg. "Chinese buyers came back as they thought the downtrend was over," a Hat Yai rubber trader said. Demand from China in the coming week should prevent prices from falling significantly, but price rises would be capped as supply was also rising, traders said. |
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