Rubber Prices Settled In The Mixed Trends Towards Strong Crude Oil Prices

Rubber futures and physical markets settled mostly lower on 22 December from a day earlier as investors took profits on rubber futures amid concerns over tightening global rubber supply before year-end holidays.

The new benchmark June Tocom rubber contract settled lower at 413.5 yen/kg on 22 December at the day session as some investors took profits ahead of a public holiday in Japan on 23 December, but firm market fundamentals limited the downfall.

DESCRIPTION	22 DEC	23 DEC	CHANGE	% CHANGE	UNIT
IRCo's DCP	487.23	489.32	2.09		0.43%	US cents/kg
TOCOM/RSS3 *
- Jan. 11	404.90	-	-		-	Yen/kg
- Jun. 11	413.50	-	-		-	Yen/kg
SHFE/RSS3 **	37,095	37,035	-60		-0.16%	Yuan/ton
AFET/RSS3
- Jan. 11	147.00	147.50	0.50		0.34%	THB/kg
- Jul. 11	146.30	147.65	1.35		0.92%	THB/kg
RRIT ***
- RSS3	148.30	148.80	0.50		0.34%	THB/kg
- STR20	147.75	148.25	0.50		0.34%	THB/kg
SIR20 ****	495.00	495.00	0.00		0.00%	US cents/kg
SMR20 ****	497.00	494.00	-3.00		-0.60%	US cents/kg

Source: IRCo

Note: * Day session

** The highest daily trading volume was May 2011

*** RRIT means Rubber Research Institute of Thailand

**** Offer, f.o.b., Asian physical rubber prices for Jan./Feb. delivery, Dow Jones

- Closed on Public Holiday

On 23 December, rubber futures settled in the mixed trends as strong crude oil prices lent support for rubber futures. However, the most active May rubber contract on Shanghai rubber exchange settled lower due to profit-taking, according to Dow Jones. The bellwether Tocom closed for the Emperor's birthday on 23 December.

On the physical front, rubber prices settled slightly higher except for the SMR20 price on 23 December because of concerns about persistent supply tightness in major producing countries while IRCo’s DCP hit a record high of 489.32 US cents/kg on the same day. From the above consequences, a continued rise in crude oil prices was the main factor that supported rubber prices to climb to hit record highs.

(Source: http://www.irco.biz/BlogMoreDetial.php?id=2718&ShowContent=news%20&PHPSESSID=b80a808cf63c9033a7ccaf58aa239165)