Asian rubber futures settled higher Monday amid persistent supply concerns in all major growing regions and a rebound in crude oil prices.
Physical prices of the USS3 grade raw material in the central markets of Thailand were steady above THB74.50 a kilogram due to a slowdown in arrivals.
The benchmark Tocom RSS3 April contract settled Y1.7 higher at Y232.1/kg.
Prices rose further during the night session, with the April contract ending at Y233.1/kg. Night session prices aren't included in intraday trading.
"The outlook is bullish and prices are likely to rise above Y235/kg this week," said a Thailand-based trading executive.
A Tokyo-based broker said prices may even test Y240/kg.
Traders in Singapore said all major rubber growing regions are reporting tight supplies, which is pushing up the prices.
This year, production in Thailand will likely fall to a multiyear low of 2.0 million-2.5 million metric tons due to heavy rains, Department of Agriculture Director-General Somchai Charnnarongkul said last week during a conference in Ho Chi Minh City.
Thailand's natural rubber production was 3.0 million tons in 2008.
Dry weather in Indonesia and floods in Malaysia are also affecting output.
The benchmark January contract on the Shanghai Futures Exchange settled CNY30 lower at CNY19,040/ton. China is the world's largest consumer of rubber by volume.
China's rubber stocks have almost trebled in last four and a half months and continue to rise. As of Thursday, they were estimated at 120,697 tons in warehouses tracked by the Shanghai Futures Exchange.
On the Agricultural Futures Exchange of Thailand, the benchmark June RSS3 contract settled THB1.05 higher at THB81.70/kg.
Asian physical prices were higher as tight supply limited availability. Rains in Malaysia and Thailand are disrupting tapping and transportation of rubber, said a trader in the Thai trading center of Hat Yai. All major grades of rubber were offered above $2.40/kg.
Physical prices of the USS3 grade raw material in the central markets of Thailand were steady above THB74.50 a kilogram due to a slowdown in arrivals.
The benchmark Tocom RSS3 April contract settled Y1.7 higher at Y232.1/kg.
Prices rose further during the night session, with the April contract ending at Y233.1/kg. Night session prices aren't included in intraday trading.
"The outlook is bullish and prices are likely to rise above Y235/kg this week," said a Thailand-based trading executive.
A Tokyo-based broker said prices may even test Y240/kg.
Traders in Singapore said all major rubber growing regions are reporting tight supplies, which is pushing up the prices.
This year, production in Thailand will likely fall to a multiyear low of 2.0 million-2.5 million metric tons due to heavy rains, Department of Agriculture Director-General Somchai Charnnarongkul said last week during a conference in Ho Chi Minh City.
Thailand's natural rubber production was 3.0 million tons in 2008.
Dry weather in Indonesia and floods in Malaysia are also affecting output.
The benchmark January contract on the Shanghai Futures Exchange settled CNY30 lower at CNY19,040/ton. China is the world's largest consumer of rubber by volume.
China's rubber stocks have almost trebled in last four and a half months and continue to rise. As of Thursday, they were estimated at 120,697 tons in warehouses tracked by the Shanghai Futures Exchange.
On the Agricultural Futures Exchange of Thailand, the benchmark June RSS3 contract settled THB1.05 higher at THB81.70/kg.
Asian physical prices were higher as tight supply limited availability. Rains in Malaysia and Thailand are disrupting tapping and transportation of rubber, said a trader in the Thai trading center of Hat Yai. All major grades of rubber were offered above $2.40/kg.
(Source: irco.biz)
