NR Markets close up after a dull start
A flat start to the day with Tocom opening at 267 yen/kilo (0.8 yen lower than last Friday's close). The market continued to drift sideways after Shanghai opened slightly higher and drifted below the close of yesterday. Market was mostly quiet until Chinese and Hong Kong equities market started to rally on expectations of more easing to come. This, after trade figures released showed a slowdown in China. However Tocom ended the day up 5.0 yen at 273 yen/kilo on light volume of 6,552 lots.
Shanghai opened slightly higher at 24,625 rmb, before easing to a low of 24,320 rmb (down 270 rmb). A rally in the afternoon saw the benchmark contract closing at 24,940 rmb (up 350 rmb).
SGX-Sicom also opened about unchanged and then gained in the afternoon closing up Rss3 1.9 to 4.0 usc/kg and Tsr20 3.0 to 5.2 usc/kg.
Macro-wise, there was a "risks on" feel again as Asian equities were mostly positive and the Australian dollar moved higher vs the dollar. Even a Bloomberg report which cited Goldman Sachs forecast of the biggest NR glut since 2004 (with 400+k excess) did not dampen the market.
DJ Asian Rubber Settles Higher; Thai Growers To Protest Price Declines
SINGAPORE (Dow Jones)--Asian rubber settled higher Tuesday, tracking gains in equities and crude oil, traders said.
Benchmark June natural rubber futures on the Tokyo Commodity Exchange settled Y5 higher at Y272.9 a kilogram. Prices rose sharply in the last hour as investors frantically covered short positions after crude oil posted a solid gain.
Tocom rubber may test the Y280/kg resistance level this week, after prices settled above Y272/kg, which had served as "strong" resistance, said Kaname Gokon, deputy general manager of Tokyo-based Okato Shoji.
June Tocom rubber closed unchanged in the night session, which is considered part of the next trading day.
Natural rubber on the Shanghai Futures Exchange settled 0.5% higher at CNY24,680 a metric ton, tracking the Chinese equity markets, which rose due to improving liquidity and government statements of support. Traders tip near-term consolidation, likely in a range of CNY24,500-CNY26,500 a metric ton, as investors continue to take cues from external factors.
China imported 2.1 million metric tons of natural rubber in 2011, a increase of 13% from 2010, preliminary data provided Tuesday by the General Administration of Customs showed.
Physical rubber prices also rose Tuesday, tracking the futures markets. Buyers from China were mostly on the sidelines, a major Thai exporter said. "Maybe they are hoping for lower prices, or they are in a holiday mood already [ahead of the Lunar New Year]."
Despite support from recent heavy rain and flash floods in south Thailand, natural rubber growers are still unhappy and are pressuring the government to shore up prices.
Rubber growers from across Thailand are planning to protest this week against the recent decline in rubber prices at the Bangkok residence of Prime Minister Yingluck Shinawatra, local news media reported.
Rubber planters from the south were expected to gather in Songkhla Tuesday before traveling to Bangkok, the MCOT website reported, quoting Chayant Sangkhapaitoon, coordinator of a network of rubber growers from south Thailand.
Prices of unsmoked sheet 3-grade have fallen to about THB90/kg from more than THB120/kg in September because of concerns about the euro-zone debt crisis and the health of the global economy.
The government late last year recommended a minimum price of THB95/kg for USS3.
-By Huileng Tan, Dow Jones Newswires; +65 6415 4083; firstname.lastname@example.org
--Yue Li in Shanghai contributed to this article.
(END) Dow Jones Newswires 01-10-12 0548ET
Copyright (c) 2012 Dow Jones & Company, Inc. 05:48 011012
DJ Thai Rubber Growers Protest Decline In Prices - Report
SINGAPORE (Dow Jones)--Rubber growers across Thailand are planning to protest at the Bangkok residence of Prime Minister Yingluck Shinawatra, local news media reported.
They are protesting against a fall in rubber prices, MCOT website reported, quoting Chayant Sangkhapaitoon, coordinator of a network of rubber growers from the south of Thailand.
Rubber planters from the south will gather in Songkhla Tuesday before traveling to Bangkok, Chayant told MCOT.
Prices of unsmoked sheet 3-grade have fallen to about THB90/kg from more than THB120/kg in September because of global macro-economic concerns.
The government late last year set a minimum price of THB95/kg for USS3.
-By Huileng Tan, Dow Jones Newswires, +65 6415 4083; email@example.com
(END) Dow Jones Newswires 01-10-12 0130ET
Copyright (c) 2012 Dow Jones & Company, Inc.