TOCOM Rubber rises on short covering

Rubber gained, booking second weekly increase, amid concern that supply from Thailand, the largest exporter, may tighten further on seasonal decline in output.
May-delivery rubber on the Tokyo Commodity Exchange advanced 0.4 percent to settle at 381.9 yen per kilogram ($4,563 a metric ton) after climbing to 383 yen, matching a 30-year high reached on Nov. 11. The contract advanced 3.1 percent this week. Night session on Friday witnessed natural rubber futures trading with positive notes.
Most active May deliveries rose 385.5 yen and closed at 384.5 yen making gain of 2.6 yen. The spot month did not have any quotes in the night session on Friday. Today also TOCOM rubber traded with positive signs. All the contracts opened above the previous day closing price.
Most active May deliveries opened 2.6 yen above previous day closing and rose as high as 390.3 yen. Though the contract declined to 383.3 yen, it again rose and is currently trading at 390.0 yen making gain of 8.1 yen. April deliveries are now making the highest gain for the day 8.4 yen.
Shanghai Market closed on Friday making gains. Today all the contracts opened above previous day closing prices. Most active May deliveries opened at 33855, 530 yuan above previous day closing.
The contract rose to as high 34985 yuan, but has come down and is currently trading at 33780 yuan. August deliveries rose to the highest level of 34495 yuan and are currently trading at that level making the highest gain of 1565 yuan for the day. Natural rubber stock with Shanghai Futures Exchange rose by 1000 tons to 42720 yuan.
Cash rubber prices climbed to a record after heavy rain and flooding reduced output in Thailand and other Asian producers, according to the Rubber Research Institute of Thailand. The price will likely extend gains as latex production in the country starts a seasonal decline as early as next month, said Hisaaki Tasaka, an analyst at Tokyo-based broker ACE Koeki Co. Only May, June and July deliveries are quoted in Thai market today.
All the three contracts are trading with gains ranging from 3.20 baht per kg to 3.60 baht per kg. May deliveries are making the highest gain of 3.60 yuan and the prices have gone up as high as 141.50 baht. Most active July deliveries rose as high as 141.20 and is now trading with gain of 3.20 yuan.
In Malaysia natural rubber SMR 20 FOB prices had gone up as high as 1378.50 sen kg for buyers and 1392.50 sen per kg on Friday. The spread hd gone up as much as 14 sen per Kg. the market is reported to be firm.
Crude Oil News
OPEC discounted last week’s $90 oil price and kept its output targets unchanged yesterday, betting supplies in storage and a fragile global economic recovery will prevent crude from surging. Oil dropped for a second day after OPEC kept production targets unchanged and China’s inflation accelerated, fueling speculation it will take further steps to cool the economy. The January contract dropped as much as 25 cents, or 0.3 percent, to $87.54 a barrel in electronic trading on the New York Mercantile Exchange and was at $87.60 a barrel at 7:31 a.m. Singapore time.
Supply and demand are “in balance,” and $70 to $80 is “a good price” for oil, Saudi Arabian Oil Minister Ali al-Naimi said at the group’s meeting in Quito, Ecuador. OPEC forecasts demand growth will slow as the economy struggles to recover, amid ample supplies, according to a group statement. Oil producers increased sales for the first time in four weeks to lock in profits near $90 a barrel, reversing a two-year contango and raising speculation that stockpiles will decline.
India News
Corporate treasurers in India say they are delaying bond sales after U.S. President Barack Obama’s tax cuts and Europe’s sovereign debt crisis drove a benchmark for their global borrowing costs to a four-month high.
The Telecom Regulatory Authority of India, the telecommunications regulator, has recommended scrapping 38 airwave permits held by companies including Aircel Ltd., Dishnet Wireless Ltd., Etisalat DB Telecom Pvt., and Unitech Wireless Pvt. Prime Minister Manmohan Singh said he’s “fully confident” that the bloc of nations using the euro will “emerge unscathed” from whatever problems it faces.
Weather Report
In Malaysia at Kuala Lumpur thunderstorms and scattered rain are expected. Temperature may go up to 32 °C during day time. 60 per cent chance of precipitation is expected during the day time and night time. Temperature is expected to be at 23 °C at the low level.
According to the Jakarta Observatory, thunder storms and scattered clouds is expected. Day temperature may go up to 29 °C. There is 60 per cent chance for precipitation and temperature at low level will be 24 °C.
In Thailand, the climate is expected to be partly cloudy with 10 -20 per cent chance of precipitation. Temperature may go up to 31°C during day time. Temperature is expected to be at 23 °C at the low level. In Beijing, China, 0 percent chance of precipitation is expected. The climate is expected to be sunny and clear. Temperature may go up to 6°C during day time. Temperature is expected to be at -04°C at the low level.
In Singapore, thunderstorms and scattered clouds are expected with 60 per cent chance of precipitation. Temperature may go up to 32 °C during day time. Temperature is expected to be at 24 °C at the low level.
In Thiruvananthapuram, thunderstorms and scattered rain are expected with 60 percent chance of precipitation. Temperature may go up to 29 °C during day time. Temperature is expected to be at 24 °C at the low level. In Kottayam, scattered rain with thunderstorms is expected with 60 per cent chance of precipitation.
Temperature may go up to 30 °C during day time. Temperature is expected to be at 23 °C at the low level.

(Source: http://www.commodityonline.com/futures-trading/technical/TOCOM-Rubber-rises-on-short-covering-20494.html)