Currencies keep SE Asian rubber prices on edge<\/p>\n
SINGAPORE (Reuter): Southeast Asian rubber prices are seen
\ntrending steadily this week but uncertainty over the region's
\nvolatile currency markets will keep the trade cautious, dealers
\nsaid yesterday.<\/p>\n
Although gains in Japanese futures markets and regional buying
\ninquiries point to firmer price levels, any gains are likely to
\nbe limited by slack demand during the summer holiday period in
\nthe U.S. and Europe as well as the currency factor.<\/p>\n
\"Uncertainty in regional currencies, although they have
\nstabilized a bit, is still lingering in players' minds,\" a dealer
\nin Malaysia said.<\/p>\n
A trader in Thailand, the world's biggest natural rubber
\nproducer, said the market there is also waiting for word on an
\neconomic rescue plan being crafted with the International
\nMonetary Fund (IMF) to restore calm to the wobbly baht.<\/p>\n
\"Many prefer to see what that (IMF package) will mean to the
\nforeign exchange market before making a move,\" a trader said. But
\nbuying sentiment around the region has improved due to the
\nstronger performance of the Japanese markets.<\/p>\n
Dealers in Indonesia said the steady gains in Tokyo had
\nresulted in buyers from the United States and Singapore trickling
\nback into the market, but added they did not expect any
\nsignificant rise in values.<\/p>\n
\"Buying interest has been improving, and I think prices will
\nbe steady this week if not slightly higher,\" one said.<\/p>\n
\"Tokyo futures posted gains last week, and this should help
\ngive some support to our market,\" he added. \"Tokyo's gains have
\nbeen the main reason for prices firming in Indonesia.\"<\/p>\n
Thai traders said the gains in Japan and fresh inquiries
\nshould help shore up prices.<\/p>\n
But any major pickup in demand will have to wait for the end
\nof the summer holiday season in the U.S. and Europe.<\/p>\n
\"The market may be flat or fluctuate at around current
\nlevels,\" a dealer in Malaysia said. \"They (Far East buyers) are
\nchecking prices on the latex and SMR grades of rubber for forward
\nshipment.\"<\/p>\n
\"Most of the people will be off for summer and the offtake may
\nweaken as a result,\" a Singapore-based dealer added.<\/p>\n
\"The trade improved a bit but the overall market is still
\nquiet. There's some short-covering here and there,\" a dealer in
\nthe Thai rubber center of Hat Yai said.<\/p>\n
Malaysian dealers said stocks remain ample although rains
\nlater in the year may cause inventories to tighten.<\/p>\n
Indonesian dealers said September SIR20 offers were quoted
\n0.25-50 cents higher at 44.00 U.S. cents\/lb FOB Medan, 43.75-
\n43.875 cents FOB Palembang and Surabaya, 43.50 cents FOB Padang
\nand 43.25 cents FOB Pontianak and Jambi.<\/p>\n
In Thailand, the benchmark RSS3 for September was quoted
\naround 100.00-101.00 U.S. cents\/kg FOB Bangkok. December was
\nindicated around 100.00 U.S. cents a kg on the same basis.<\/p>\n
The key August RSS1 rubber was quoted at 250.50 Malaysian
\ncents a kg at the close of the market on Friday. August SMR 20
\nfinished the week at 250 cents.<\/p>\n
Dealers offered SMR CV at 294 cents, SMR L at 275, SMR 5 at
\n254 cents, SMR 10 at 248, SMR 20 at 246 and latex at 190 cents.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/currencies-keep-se-asian-rubber-prices-on-edge-1447893297",
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