Rubber prices firm in S'pore, Kuala Lumpur

Rubber prices firm in S'pore, Kuala Lumpur

SINGAPORE (Reuter): Singapore rubber futures maintained early
gains by the finish yesterday, encouraged by continued advance in
Tokyo and firm regional cash prices, traders said.

But dealings were razor-thin as most houses closed early
yesterday ahead of a trade gathering in Malacca this weekend.

By 0945 GMT, Dec RSS3 was untraded but January rubber was
dealt at US$1.50 a kg, up from $1.49 overnight.

Jan-March RSS1 was traded at 213 Singapore cents (US$1.51) a
kg versus 212 cents last settled. TSR20 sector was neglected.

Traders said the Singapore's run-up followed further rises in
Tokyo despite firmer yen against the U.S. unit.

By the finish, benchmark April was 2.2 yen up at 156.4 yen a
kg and near the immediate upside target of 158.1 yen.

Cash prices were marked higher but traders said buying was not
brisk as most consumers were sidelined due to high prices.

Except for some light buying by Bridgestone and Michelin,
other major tyre manufacturers were absent.

Indonesia's Dec SIR20 rubber FOB Belawan was traded at 63.50
U.S. cents a lb and was further offered at 64 cents this morning.
Prices at other Indonesian ports were around 63 cents. Traders
said near-term trend remained firm but activity could be slow in
anticipation of significant news.

In Kuala Lumpur, rubber prices ended higher, extending the
firmer trend on shortcovering and underlying firm fundamentals,
but trading was limited by lack of players' participation,
dealers said.

Most traders were not in the market as they head for the
southern Malacca state to attend a trade dinner and the ASEAN
rubber traders' meeting this weekend.

"The market is quiet and we are not trading anything because
of lack of interest," a dealer said.

Rebound

But prices will rebound after a brief adjustment, as the
underlying sentiment remains firm due to a continuing shortage of
rubber supplies because of rains.

Nov RSS Ones buyer rose five cents to 378 cents ($1.49) a kg
and Nov SMR20 buyer up 1.50 cents at 357.50 cents.

INRO's five-day moving average price was quoted at 286.30
Malaysian/Singapore cents a kg on Oct 26 against 284.78 on Oct
25. Daily indicator price was 288.71 against 287.00.

In Bangkok, rubber prices firmed on higher prices in Japan and
rising local demand as exporters and factories scrambled for
supplies, traders in southern Thailand said.

"The market is still bullish on strong fundamentals and
technicals," said one trader.

Thai benchmark RSS-3 firmed to around $1.50/kg-$1.51/kg for
December-March shipment compared with around $1.41/kg-$1.42/kg
last week, the traders said.

Traders said the supply of raw material was improving as rains
were ending, but exporters scrambling to fill orders and local
factories were competing for supplies.

"There's a lot of delay (in filling export orders) from
Thailand because of the tight supplies over the last one or two
months," one of the traders said. "Exporters and factories are
fighting to buy raw materials."