Posted on 21 Dec 2011
NR Markets close well up
Tocom sentiment was lifted by the better performance in the Western Financial markets overnight, which saw the benchmark springing 6.4 yen higher , at 277.7 yen/kilo ,on the opening this morning. Market then became stuck and traded range bound around this level, before settling the day at 277.9 Yen/kilo (up 6.6 Yen). Total volume was 4,045 lots. In the evening session some light seliing took the market down 1 yen.
The positive development also supported sentiment in Shanghai which, gained 360 rmb to close at 25,275 rmb.
SGX-Sicom also opened higher and traded in light conditions with Rss3 closing up 3.0 to 8.0 usc/kg and Tsr20 up 3.3 to 7.6 usc/kg.
DJ Asian Rubber Settles Higher; China November Imports Up 30% On Year
SINGAPORE (Dow Jones)--Asian rubber settled higher Wednesday, tracking strong gains in equities and crude-oil prices, as risk sentiment recovered on better-than-market-expected U.S. housing starts data and a solid Spanish bond auction.
Benchmark May natural rubber futures on the Tokyo Commodity Exchange settled Y6.6 higher at Y277.9 a kilogram. Funds have been taking new long positions on Tocom, sending prices higher, a trading participant said.
Fundamentals for natural rubber have been relatively firm and supportive as demand is expected to outstrip supply this year, but macroeconomic fears have been weighing on prices.
China's November natural rubber imports rose 30% from a year ago and 11% from October to 240,047 metric tons, the General Administration of Customs said.
Many traders expect Tocom to continue moving in a wide Y260-Y280/kg range, taking external cues ahead of year-end holidays.
May Tocom rubber closed Y1.1 lower at Y276.8/kg in the night session, which is considered part of the next trading day.
Natural rubber on the Shanghai Futures Exchange settled 2% higher at CNY25,315 a metric ton. Traders tip near-term consolidation, likely in a range of CNY25,000-CNY27,000/ton, as lingering concerns over a slowing domestic economy and traditional year-end liquidity crunch may weigh on market sentiment.
Physical rubber prices also rose. Thai traders said tire majors were bidding far too low for trades. "They are bidding around $3,350/ton, even China is bidding higher," said a major exporter in Bangkok offering both RSS3 and STR20 grades at $3,450/ton, free on board.
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-By Huileng Tan, Dow Jones Newswires, +65 6415 4083; huileng.tan@dowjones.com
--Yue Li in Shanghai contributed to this article.
(END) Dow Jones Newswires 12-21-11 0556ET
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