Tokyo Futures Fall on Firmer Yen, Growth Worries

Key Tokyo rubber futures fell from one-month highs on Friday (May 27), hurt by a stronger yen and growing concerns over the sovereign debt crisis in Europe and the growth outlook.
FUNDAMENTALS
The benchmark contract on the Tokyo Commodity Exchange for November delivery, which debuted on Thursday (May 26), was down 4.4 yen or 1.1 percent to 387.0 yen per kg as of 0030 GMT.
The contract rose as high as 392.2 yen on Thursday (May 26), the highest for any benchmark since April 28, when firmer oil prices and rising Shanghai rubber futures helped support sentiment.
The most-active Shanghai rubber contract for September delivery rose 395 yuan to close at 32,690 yuan ($5,033.933) per tonne on Thursday (May 26).
Asian physical rubber prices were a little higher on Thursday (May 26), supported by rising futures prices in Tokyo and limited supply in producing countries, dealers said.
The euro remained under pressure on Friday (May 27) on mounting doubts Greece will receive the next round of aid from the International Monetary Fund and on global outlook concerns, while the dollar slid against the yen.
U.S. crude futures stood steady above $100 a barrel on Friday (May 27) after falling more than 1 percent a day earlier on weak U.S. economic data that raised worries about oil demand.
MARKET NEWS
The International Monetary Fund could withhold the next slice of aid to Greece due next month, the head of euro zone finance ministers said on Thursday, spooking markets with the possibility of default.
Unexpectedly weak consumer spending hobbled the U.S. economy in the first quarter and fresh signs of a slowdown in the labour market pointed to an uphill struggle for the recovery.
Honda Motor Co Ltd said its North American assembly plants will not reach full production until August for most vehicles, and it will take even longer for the high-volume Civic compact car.
Global natural rubber production was forecast to rise to 9.936 million tonnes in 2011, lower than a previous estimate of 10.025 million tonnes, due to output revisions in Indonesia and the Philippines, industry group ANRPC said on Thursday (May 26).
The Nikkei stock average edged lower on Friday as optimism over a rise in U.S. stocks was offset by a stronger yen.
U.S. stocks rose for a second day on Thursday (May 26) in a choppy session, with technology and consumer discretionary stocks leading the way after upbeat earnings.

Spot rubber declines on buyer resistance

KOTTAYAM, MAY 27:

Physical rubber prices declined on Friday. Though there has been no visible selling pressure in the market as arrivals continued to be low, prices slipped on buyer resistance. Transactions were meagre.

The rubber market continues to be clouded by uncertainties according to the Association of Natural Rubber Producing Countries (ANRPC). Prices from mid-April onwards have been on the decline although at a slow pace on growing concerns about global economy, strengthening of Japanese yen and marginal drop in crude oil prices.

Sheet rubber surrendered to Rs 214 (217) a kg, according to traders. The grade moved down to Rs 215.50 (217) a kg both at Kottayam and Kochi, according to the Rubber Board.

The June series weakened to Rs 215.31 (216.51), July to Rs 219.27 (220.47), August to Rs 218.50 (219.91) and September to Rs 218 (218.55) while the October series improved to Rs 215.55 (213.50) and November to Rs 217.15 (214.00) a kg for RSS 4 on the National Multi Commodity Exchange.

The June futures inched up to ¥418 (Rs 232.99) from ¥417 a kg during the day session but then finished unchanged in the night session on the Tokyo Commodity Exchange. RSS 3 (spot) slipped to Rs 233.27 (233.32) a kg at Bangkok.

Spot rates were (Rs/kg): RSS-4: 214 (217); RSS-5: 212 (214); ungraded: 210 (212); ISNR 20: 207 (209) and latex 60 per cent 128 (130).

Source: http://www.thehindubusinessline.com/markets/commodities/article2054528.ece

Import of Synthetic Rubber in China - tons

Source Country		During Apr-11		% change from Apr-10		Unit value ($/ton)		During Jan-Apr.11		% change from Jan-Apr.10
South Korea		26,375		-29.1		3,283		112,548		-20.6
Japan		17,815		-20.0		3,661		75,200		-18.0
USA		17,760		-3.6		4,037		79,299		14.5
Russia		13,810		-47.8		4,095		48,851		-43.3
Taiwan		9,520		-29.2		2,939		38,979		-18.6
France		5,514		-19.1		3,669		19,068		13.5
Canada		4,396		37.7		4,938		12,971		35.1
Germany		3,610		-47.6		2,925		21,891		8.7
Malaysia		2,579		-9.7		4,450		11,040		8.1
Belgium		2,471		-21.1		3,863		15,457		-5.7
Britain		2,355		-16.0		3,438		11,490		21.8
Netherlands		1,995		-3.7		3,357		10,502		51.9
Mexico		1,971		21.2		3,677		8,665		91.8
Italy		1,903		-18.5		2,965		6,241		18.0
Thailand		1,785		-53.1		2,845		9,734		-41.8
Brazil		894		-2.9		3,213		2,672		-47.4
Iran		750		-28.2		3,565		3,080		-49.7
UAE		342				3,830		997
Singapore		321		-32.7		4,481		1,000		-37.1
Spain		279		-87.4		2,338		898		-84.7
Indonesia		242		114.3		1,110		2,048		-52.0
Hongkok		141		-48.2		3,149		817		-3.7
Others		1,472
Total		118,300		-27.1		3,621		503,337		-14.8

Source: Customs Department, Government of China

Note: Synthetic latex grades are accounted in wet weight

China: Shanghai Warehouse Rubber Stocks Down 26.2 Percent

Rubber inventories in warehouses monitored by the Shanghai Futures Exchange fell 26.2 percent from last Friday, the exchange said on Friday (May 27).
Changes in metals stocks are reported as follows:
DELIVERABLE ON WARRANT

(Reuters, May 27, 2011)

Europe: Truck sales continue recovery

Brussels – Registrations of new commercial vehicle registrations increased by 9.5 percent across the EU in April, according to new data from ACEA, the European federation of vehicle makers.

Among the major markets, only France (-3.0 percent) and Spain (-14.3 percent) declined while Germany (+12.2 percent) and the UK expanded (+23.6 percent). From January to April, a total of 657,707 new vehicles were registered, or 13.5 percent more than over the same period a year ago. France (+7.7 percent) recorded the most vehicles (161,941 units), followed by the UK (104,190) and Germany (103,020) which grew by 28.6 percent and 25.5 percent respectively.

Heavy truck (over 16t) sales continued to accelerate, with sales reaching 20,581 new heavy trucks in April. All major markets posted strong growths, leading to an overall 52.4 percent upturn in the region. The British market expanded by 72.7 percent, followed by the Netherlands (+62.1 percent), France (+47.8 percent), Spain (+32.5 percent) and Germany (+31.5 percent).

From January to April, 78,624 new trucks were registered in the EU, or 61.9 percent more than in the same period last year. Germany (+50.9 percent) was the biggest market, recording 19,860 units, while France (+62.8 percent) ranked second with 13,369 new vehicles. The Netherlands (+40.6 percent) and Spain (+40.7 percent) performed similarly. The UK saw its demand increase by 79.9 percent.

The same picture emerged in mid-sized trucks (3.5t – 16t) with 27,338 new vehicles regitered in the EU in April, posting a 42.4 percent increase compared to the same month a year earlier. Growth prevailed across countries, ranging from +56.7 percent in the Netherlands to +48.8 percent in the UK, +40.1 percent in France, +31.3 percent in Germany and +28.9 percent in Spain.

Over the first four months, the most significant markets performed similarly as demand for new trucks grew by 36.2 percent in the Netherlands, 40.8 percent in Spain, 43.3 percent in the UK, 45.4 percent in Germany and 52.2 percent in France. Overall, new truck registrations increased by 48.7 percent, totaling 103,935 units.

Sales of vans (up to 3.5t) also increased, but much more slowly. In April, demand for new vans were up 4.6 percent** in the EU*, amounting to 127,814 units. Of the most significant markets, France (-6.6 percent) and Spain (-19.0 percent) faced a downturn, while new registrations increased in Germany (+5.1 percent) and the UK (+21.4 percent).

Four months into the year, new van registrations totaled 543,030 units, or 8.9 percent more than in the first four months of 2010. France was the largest market and expanded by 4.5 percent. Germany (+18.9 percent) and the UK (+29.0 percent) both posted a double-digit growth, while Spain saw its market contract by 11.3 percent.

Once again, sales of buses and coaches declined. Registrations slipped by 0.3 percent in April as the Spanish (+56.7 percent) and German (+14.4 percent) markets expanded while new registrations were down in France (-18.3 percent) and the UK (-10.7 percent).

From January to April, the EU* recorded 10,742 new buses and coaches, or 1.3 percent less than in the same period in 2010. The UK and France remained the largest markets despite a downturn of 28.2 percent and 13.6 percent respectively. The German market was stable (+0.5 percent), while the Spanish expanded by 66.4 percent.

Due to the unavailability of data from Italy since January 2011, figures reported for that country are an extrapolation made by data provider AAA. They are not actual market figures, hence the possibility of an error margin with regard to the EU totals. Italy usually accounts for 10 to 15 percent of the EU Commercial Vehicle market.

Source: european-rubber-journal.com

NMCE, India: Rubber up, castor seed down Friday

MUMBAI (Commodity Online) : On Friday, till5 pm, National Multi Commodity Exchange of India ltd (NMCE) traded in 18 Commodities. The total volume is 13842 lots with a turnover of Rs.438.26 crores.

RUBBER FUTURES traded with a total volume of 7632 lots and a turnover of 165Crs. 88Lakhs. The Total Open interest in all series was 5412.June Series lost Rs.120 at LTP at the end of today's first session at Rs.21531.00. July Series lost Rs.120 at LTP at the end of today's first session at Rs.21927.00. September Series lost Rs.55 at LTP at the end of today's first session at Rs.21800.00. August Series lost Rs.141 at LTP at the end of today's first session at Rs.21850.00. October Series gained Rs.205 at LTP at the end of today's first session at Rs.21555.00. November Series gained Rs.315 at LTP at the end of today's first session at Rs.21715.00

CASTOR SEED 10 MT FUTURES traded with a total volume of 244 lots and a turnover of 11Crs. 97Lakhs. June Series lost Rs.49 at LTP at the end of today's first session at Rs.4859.00

RAPE/MUSTARD SEED FUTURES traded with a total volume of 966 lots and a turnover of 24Crs. 53Lakhs. June Series lost Rs.4.7 at LTP at the end of today's first session at Rs.503.30

NICKEL FUTURES traded with a total volume of 4 lots and a turnover of 10Lakhs. June Series lost Rs.0.3 at LTP at the end of today's first session at Rs.1057.00. July Series gained Rs.1 at LTP at the end of today's first session at Rs.1061.00

COPPER FUTURES traded with a total volume of 172 lots and a turnover of 7Crs. 09Lakhs. June Series lost Rs.0.15 at LTP at the end of today's first session at Rs.412.45. August Series lost Rs.0.8 at LTP at the end of today's first session at Rs.417.00

ZINC FUTURES traded with a total volume of 788 lots and a turnover of 40Crs. 46Lakhs. May Series lost Rs.0 at LTP at the end of today's first session at Rs.99.50. June Series lost Rs.0.7 at LTP at the end of today's first session at Rs.102.00

LEAD FUTURES traded with a total volume of 308 lots and a turnover of 17Crs. 58Lakhs. June Series lost Rs.0.95 at LTP at the end of today's first session at Rs.113.25

GOLD FUTURES traded with a total volume of 26 lots and a turnover of 58Lakhs. June Series lost Rs.18 at LTP at the end of today's first session at Rs.22357.00

SACK FUTURES traded with a total volume of 752 lots and a turnover of 33Crs. 88Lakhs. June Series gained Rs.36 at LTP at the end of today's first session at Rs.3641.00

RAW JUTE FUTURES traded with a total volume of 768 lots and a turnover of 25Crs. 61Lakhs. May Series lost Rs.0 at LTP at the end of today's first session at Rs.3304.60. June Series lost Rs.15.9 at LTP at the end of today's first session at Rs.3321.50

COFFEE REP BULK FUTURES traded with a total volume of 6 lots and a turnover of 10Lakhs. May Series lost Rs.0 at LTP at the end of today's first session at Rs.11180.00

CHANA FUTURES traded with a total volume of 508 lots and a turnover of 12Crs. 81Lakhs. June Series lost Rs.17 at LTP at the end of today's first session at Rs.2505.00

GUARGUM FUTURES traded with a total volume of 44 lots and a turnover of 4Crs. 54Lakhs. June Series gained Rs.103.5 at LTP at the end of today's first session at Rs.10464.50

GUARSEED 10 MT FUTURES traded with a total volume of 142 lots and a turnover of 4Crs. 70Lakhs. June Series gained Rs.32 at LTP at the end of today's first session at Rs.3347.00

ISABGULSEED FUTURES traded with a total volume of 498 lots and a turnover of 27Crs. 11Lakhs. June Series gained Rs.54 at LTP at the end of today's first session at Rs.5459.40. August Series gained Rs.55 at LTP at the end of today's first session at Rs.5567.40

SOYOIL 10 MT FUTURES traded with a total volume of 612 lots and a turnover of 39Crs. 81Lakhs. June Series lost Rs.6.45 at LTP at the end of today's first session at Rs.644.05

ALUMINIUM 5 TON FUTURES traded with a total volume of 370 lots and a turnover of 21Crs. 44Lakhs. June Series lost Rs.1.1 at LTP at the end of today's first session at Rs.114.80

GOLD GUINEA FUTURES traded with a total volume of 2 lots and a turnover of The Total Open interest in all series was 62. May Series lost Rs.0 at LTP at the end of today's first session at Rs.17865.00

Source: http://www.commodityonline.com/news/Rubber-up-castor-seed-down-Friday-at-NMCE-39417-3-1.html

Apollo Tyres open to buying rubber plantations: MD

NEW DELHI: Apollo Tyres Ltd is open to the possibility of buying rubber plantations to fight surging rubber prices that have been eroding tyre makers' margins, a top executive said on Friday.
"As far as buying rubber plantations, or for that matter any kind of backward integration, is concerned, we are always open to possibilities depending upon the need of the hour," Neeraj Kanwar , vice-chairman and managing director, told in an e-mailed response.
The tyre maker is reviewing contracts with suppliers to correct rubber prices, and also maintaining a leaner and efficient inventory and working towards greater production efficiency to deal with higher prices of rubber, a key raw material for tyre, he said.

Source: http://economictimes.indiatimes.com/news/news-by-industry/auto/tyres/apollo-tyres-open-to-buying-rubber-plantations-md/articleshow/8600648.cms

Global Tire Demand Exceeding Supply Helps Bridgestone, Goodyear, Sumitomo

Global tire demand is expanding at a faster pace than production, led by growth in China, as vehicle sales are increasing, Sumitomo Rubber Industries Ltd. (5110) said.

Tire sales in China, the world’s largest auto market, may increase 30 percent this year, or at 10 times the global rate, President Ikuji Ikeda said in an interview. Sumitomo Rubber, the largest Japanese tiremaker after Bridgestone Corp. (5108), said sales will increase 3.1 percent to 93.7 million tires this year.

Rubber prices climbed 38 percent in the past year and reached a record in February after auto sales in China surged 32 percent in 2010 to an all-time high, surpassing the U.S. market for a second year. Increasing costs spurred tiremakers from Bridgestone to Akron, Ohio-based Goodyear Tire & Rubber Co. to raise prices. Commodities beat stocks, bonds and the dollar for five straight months through April, prompting central banks from Beijing to Brasilia to raise interest rates to cool inflation.

“Tire supply/demand is tight globally and particularly in North America,” Goldman Sachs Group Inc. analysts including Yuichiro Isayama said. “In contrast to many makers that retrenched due to the financial crisis, Bridgestone and Sumitomo Rubber increased capacity and are benefitting from growth in demand amid a global supply shortage,” they said May 12.

Bridgestone shares advanced 24 percent in the past year and traded at 1,825 yen in Tokyo today, while Sumitomo Rubber shares increased 15 percent to 923 yen.

China Sales

While auto sales in China reached a record 18 million last year, they slowed in 2011 as the nation increased retail gasoline and diesel prices and tightened monetary policy to cool the fastest inflation since 2008. The government increased interest rates and raised bank reserve-ratio requirements to curb price gains that have exceeded the government’s 4 percent target every month this year. Demand for replacement tires is growing in China as car ownershipexpands, Ikeda said.

Sumitomo Rubber, which controls about 6 percent of the global tire market, said it can process 46,000 tons of rubber a month this year, up 3.5 percent from last year. The Kobe-based company said May 17 it is building a plant in Brazil that will have a capacity of 2,200 tons a month by 2013 and is also expanding production capacity in Thailand and China.

“Our production capacity is not large enough to meet expanding demand,” Ikeda said in Tokyoon May 25. “The shortage may worsen” as global consumption is expected to grow by 3 percent annually in coming years, he said.

Tire Demand

Global sales of passenger-car tires are forecast to grow 6.1 percent this year from 2010, while sales of commercial- vehicle tires are forecast to rise 11 percent, International Rubber Study Group forecast on Jan. 26.

Natural-rubber production in key growing countries may miss estimates this year as output slows in the second quarter, the Association of Natural Rubber Producing Countries said yesterday. Production from member countries, representing 92 percent of global supply, may expand 4.9 percent, less than the 5.8 percent forecast last month, the group said in an e-mailed report.

Rubber futures in Tokyo tumbled to 335 yen a kilogram ($4,098 a metric ton) on March 15 from a record high of 535.7 yen reached on Feb. 18. The March 11 earthquake and tsunami disrupted supplies of car parts, forcing Toyota Motor Corp. and rivals to slash output and stoking concerns that tire demand from automakers will weaken. Futures traded at 387.3 yen at 1:06 p.m. local time.

Pre-Quake Level

The disaster will reduce tire sales for new cars in Japan by about 2 million units from March to June, Ikeda said. The loss may be recouped in the second half of this year as automakers step up efforts to restore production, he said.

“Some of the carmakers may return their production to pre- quake levels by July,” Ikeda said.

The company plans to use 505,000 tons of natural and synthetic rubber this year for tire production, gaining 6.5 percent from last year. Natural rubber represents more than half of the volume, said Shizuma Kubota, general manager at Sumitomo Rubber’s public relations department.

More than 80 percent of the natural rubber used by the company is technically specified rubber, which is cheaper and easier to process than ribbed-smoked-sheet rubber, Ikeda said.

Technically specified rubber for June delivery on the Singapore Exchange closed at $4.62 a kilogram yesterday. The price reached a record $5.75 on Feb. 10 amid speculation the supply shortage may worsen after heavy rains disrupted output in Thailand, Indonesia and Malaysia -- the top-three producers.

Seasonal Increase

Ribbed-smoked-sheet rubber for June delivery on the Singapore bourse closed at $5.14 a kilogram yesterday, retreating from a record $6.488 reached on Feb. 17.

The company expects to buy so-called TSR-20 rubber at $5.5 a kilogram on average for the second quarter of this year, $5.2 for the third quarter and $5 for the fourth quarter as a seasonal increase in supply from Thailand, the world’s largest producer and exporter, will put a drag on prices.

“I don’t expect the price will exceed $6,” Ikeda said. Supply will also increase as trees planted five to seven years ago in Southeast Asia will become available for tapping, he said.

Thailand Natural Rubber F.O.B. price May 27, 2011

Source: http://vnb-blog.blogspot.com/2011/05/thailand-natural-rubber-price-27052011.html

Vietnam Natural Rubber (SVR) F.O.B. price May 27, 2011

Source: http://vnb-blog.blogspot.com/2011/05/vietnam-natural-rubber-price-27052011.html

Growth of global NR output to decline in Q2: ANRPC

Kuala Lumpur – Following a decrease in NR prices in recent weeks, the Association of Natural Rubber Producing Countries (ANRPC) now expects output growth in the second quarter to ease to 5.8 percent, compared with over 10 percent in the first quarter of the year.

ANPRC revealed the forecast in the May issue of its publication, Natural Rubber Trends & Statistics. This covers historical data from February 2011, and forecasts for the coming months.

The group said output from its member countries in the first quarter of 2011 is expected to reach 2.348 million tonnes, up 10.1 percent from the figure of 2.133 million tonnes in 2010 and 1.79 million tonnes in 2009.

For the second quarter, ANRPC said total production by its members would be 2.205 million tonnes, up by 5.8 percent from the figure of 2.084 million in 2010 and up from 2.054 million tonnes in the second quarter of 2009.

The output growth during the full year 2011 now stands revised down further to 4.9 percent from 5.8 percent forecasted a month before and 6.4 percent growth attained during the year before. The new revision results from a down-scaling of Indonesia’s anticipated production for the year, to 2.891 million tons from 2.972 million tons expected a month before. Philippines also has downscaled the output anticipated for this year, to 107,000 tons from its earlier forecast of 114,000 tons.

As a result of these revisions, this year’s total output from all ANRPC nations is expected at 9.936 million tons only as against 10.025 million tons previously expected and 9.472 million tons produced during 2010.

The organisation said its forecasts are based partly on reduced demand from China. “China’s Import of NR, including rubber compounds having very high NR-contents, has been on the decline after March this year. Import fell to 261,000 tons in April from 280,000 tons in March. Preliminary estimate indicates the possibility of import falling further to 245,000 tons in May and 235,000 tons in June. (An expected 27.5 percent year-to-year rise during Q2 this year reflects the very low volume imported during the same quarter in the previous year).” /p>

China’s consumption of NR, including rubber compounds having very high NR-contents, is anticipated to fall 2.8 percent, year-to-year, in Q2 (April-June) this year.

Source: http://www.european-rubber-journal.com/fullitem.aspx?id=115708

Rubber prices to depend on Japan’s recovery

By Jithendra Antonio

Though future of rubber prices are encouraging, Chairman of Balangoda Plantations PLC (BALA) Harry Jayawardena said, all depends on factors such as the change in global weather patterns, and Japan’s recovery.

Jayawardena in his review for the financial year ended in 31 December 2011 said, tensions spreading across the Middle East will also affect future of Rubber prices. In the lately published annual report of Balangoda Plantations PLC, Jayawardena goes on to explain that the country’s rubber production has recorded an increase of 16 million kilogrammes during 2010, in spite of unfavourable weather conditions experienced during the 3rd and the 4th quarters in the Sabaragamuwa District.

“Rubber prices have been at better levels last year,” Jayawardena notes adding that the main driving force being emerging economies of China and India where car production leapfrogged. “There were instances when the price of Sheet Rubber exceeded the premium grades of Crepe in 2010, which was mainly due to the increased rubber demand for tyre and automobile industries.”

Source: http://print.dailymirror.lk/business/127-local/45146.html

Tokyo futures at 1-month high

BANGKOK: Tokyo rubber futures rose to a one-month high on Thursday on the back of firmer oil prices and rising Shanghai rubber futures, but profit-taking limited the gains, dealers said.

The newly launched benchmark contract on the Tokyo Commodity Exchange for November delivery rose 2.5 yen to settle at 391.4 yen ($4.773) per kg. It rose as high as 392.2 yen, the highest since April 28.

"Players, as well as investment funds, resumed buying contracts again after seeing a rise in other commodities, while strongerShanghai futures provided additional support," said a Tokyo-based trader.

The most-active Shanghai rubber contract for September delivery rose 395 yuan to finish at 32,690 yuan ($5,033.933) per tonne.

Brent crude rose above $115 a barrel on Thursday due to a softer dollar and an unexpected drop in US distillate stocks, which overshadowed gains in gasoline and crude inventories.

However, dealers said small players took profit when prices broke above 390 yen per kg, capping further rises.

Dealers said TOCOM rubber could rise further on Friday after finishing above the key resistance of 390 yen, but the rise was seen as capped, with players still cautious about recent rises.

Source: http://www.brecorder.com/top-news/111-markets-top-news/15358-tokyo-futures-at-1-month-high.html

Tokyo Futures Rise On Higher Oil, Share Prices

Tokyo rubber futures climbed early on Thursday (May 26) as a rebound in oil prices to two-week highs and rises in share prices brightened market sentiment.
FUNDAMENTALS
The key Tokyo Commodity Exchange rubber contract for November delivery, which debuted on Thursday (May 26), stood at at 389.1 yen per kg as of 0040 GMT.
The previous benchmark contract for October delivery was up 9.3 yen, or 2.4 percent, at 395.1 yen, after settling up 2.6 percent on Wednesday at 385.8 yen ($4.709) per kg. That was the highest since May 19 and above resistance of 385 yen.
The May TOCOM rubber futures contract expired at 408.0 yen per kg on Wednesday (May 25), down 9.7 percent from the April contract's 451.6 yen expiry price.
Deliveries against the May rubber contract fell 21 percent from April, to 241 lots or 1,205 tonnes, the exchange said on Wednesday (May 25).
The most active Shanghai rubber contract for September delivery rose 680 yuan to finish at 32,295 yuan ($4,969.555) per tonne on Wednesday (May 25).
Oil prices rose 2 percent on Wednesday (May 25), climbing to two-week highs as an unexpected drop in U.S. distillate inventories trumped a sharp rise in gasoline stocks and as a softer dollar supported fresh commodities buying.
The dollar rose 0.1 percent to 81.98 yen against the yen. The euro came under further pressure against the dollar as investors fretted about Greece's ability to repay its debts.
MARKET NEWS
Delphi Automotive filed to raise up to $100 million in an initial public offering, the U.S. auto supplier said in a securities filing on Wednesday (May 25), less than two years after emerging from bankruptcy.
Electric car maker Tesla Motors Inc plans to raise up to $214 million through a share offering to help fund development of its Model X SUV, and said its chief executive would buy a portion of those shares.
The Nikkei stock average gained on Thursday (May 26), bouncing off a two-month closing low hit the previous day, helped by a rise in Wall Street shares and commodity prices, though market players said it was too early to say risk reduction has run its course.
U.S. stocks ended a three-day losing streak on Wednesday (May 25) as recent underperformers led a thinly traded rally that wasn't seen as strong enough to overcome worries about waning global demand.
(Reuters, May 26, 2011)

India: Spot rubber rules steady

KOTTAYAM, MAY 26:

Spot rubber finished unchanged on Thursday. Market activities were dull as there were no active participants, on either side, to set a definite trend. Major manufacturers were seen almost inactive.

According to traders, sheet rubber was steady at Rs 217 a kg amidst scattered transactions. The grade dropped to Rs 217 (217.50) a kg both at Kottayam and Kochi, according to Rubber Board.

The June series weakened to Rs 216.56 (218.43), July to Rs 220.50 (221.67) and August to Rs 219.63 (220.69) while the September series firmed up to Rs 218.50 (217.47) a kg for RSS 4 on the National Multi Commodity Exchange.

RSS 3 improved at its June futures to ¥417 (Rs 230.97) from ¥409 a kg during the day session but then remained inactive in the night session on the Tokyo Commodity Exchange. The grade (spot) increased to Rs 233.32 (231.17) a kg at Bangkok.

Spot rates were (Rs/kg): RSS-4: 217 (217); RSS-5: 214 (214); ungraded: 212 (212); ISNR 20: 209 (209) and latex 60 per cent: 130 (130).

Source: http://www.thehindubusinessline.com/industry-and-economy/agri-biz/article2051833.ece

NR prices remain unchanged

Tokyo -- Prices on Tokyo’s rubber exchanges eased slightly overnight.

On Tokyo's Tocom Exchange, prices for the six-month contract eased by about yen 1, trading at yen 387 ($4.73) per kg on Thursday 26 May. Shorter-dated prices moved up slightly, trading at around 413.

In Singapore, SGX said short-dated RSS3 were trading up by 4 cents at around $5.14 with longer-dated contracts up by around $0.10 at around $4.98. Short-dated TSR 20 was trading up at $4.60.

In India, the NMCE saw June deliveries ease slightly, to close at around Rs218.4 ($4.82) per kilo

In China, the Shanghai Futures Exchange also saw prices rise by a fraction of a yuan, with June deliveries trading at around Yuan 34.8 ($5.36) per kilo.

Source: http://www.european-rubber-journal.com//fullitem.aspx?id=115705

ANRPC Cuts 2011 Global Natural Rubber Output To 9.936 Million Ton

Global natural rubber production was forecast to rise to 9.936 million tonnes in 2011, lower than a previous estimate of 10.025 million tonnes, due to output revisions in Indonesia and the Philippines, industry group ANRPC said on Thursday (May 26).
This was ANRPC's second downward revision of its estimate for this year's output. Production of members of the Association of Natural Rubber Producing Countries reached 9.47 million tonnes in 2010.
"The output growth during the full year 2011 now stands revised down further to 4.9 percent from 5.8 percent forecast a month before and 6.4 percent growth attained during the year before," the ANRPC said in a report.
"The new revision results from a down-scaling of Indonesia's anticipated production for the year to 2.891 million tons, from 2.972 million tonnes expected a month before. Philippines also has downscaled the output anticipated for this year to 107,000 tonnes, from its earlier forecast of 114,000 tonnes."
ANRPC members include Thailand, Indonesia, Malaysia as well as Cambodia, China, India, Papua New Guinea, the Philippines Singapore, Sri Lanka and Vietnam, accounting for 92 percent of global output.
The group also accounts for 92 percent of global exports and 48 percent of global consumption of natural rubber.
Physical prices have dropped almost 20 percent since hitting a lifetime high at $6.40 in February, driven by futures selling on the Tokyo Commodity Exchange and worries about a drop in demand from China as it tightens monetary policy.
(Reuters, May 26, 2011)

ANRPC Announces the Release of Natural Rubber Trends & Statistics for May 2011

Supply growth for Q2 scaled down to 5.8%
Export seen rising 5.2% in Q2
China’s import declines
Thai Baht and Malaysian ringgit turn unfavourable to NR
Yen supports natural rubber
Crude oil impacts on natural rubber
Trends in natural rubber prices
21 Statistical Tables (Providing data and estimates up to May 2011 and forecasts for June & July 2011 covering 11 countries accounting for 92% of the global supply of natural rubber)
The publication is available only to paid subscribers. Annual subscription fee is RM 1,000 only (335 US dollar) for 12 monthly issues from January to December 2011.
For further details, please contact the ANRPC Secretariat at
Email: anrpc.secretariat@gmail.com or secretariat@anrpc.org
Fax: +60 3 2161 3014
Phone: +60 3 2161 1900

Asian Physical Rubber Prices On May 26

Asian physical rubber prices were a little higher on Thursday (May 26), supported by rising futures prices in Tokyo and limited supply in producing countries, dealers said.
PRICES OF PHYSICAL RUBBER COMPARED TO MAY 25

NOTE - The prices quoted above are offer prices collected from traders in Thailand, Indonesia and Malaysia. They are not official prices quoted by state-run rubber agencies in those countries.
(Reuters, May 26, 2011)

Thailand Natural Rubber F.O.B. price May 26, 2011

Source: http://vnb-blog.blogspot.com/2011/05/thailand-natural-rubber-price-26052011.html