S'pore rubber market quiet, Indonesia stable, KL firmer
S'pore rubber market quiet, Indonesia stable, KL firmer
SINGAPORE (Reuter): Trading in the Singapore rubber market was quiet by midday yesterday in light dealings with most of the trade poised to leave for an industry meeting in Indonesia, dealers said.
"I've not seen a whole lot of offers. It's probably going to be dull today since most of the people have already left for Indonesia," a dealer said.
Dealers said the market was also looking for some leads going into the afternoon session. "We hope Japan can give us some inspiration," one dealer said. "It's been really quiet so far."
Firmer Japanese prices, with Tokyo's benchmark January contract ending the morning 3.2 yen up at 124.7, should lure some buyers into the market, the dealers said.
"The market is a bit soft and dull this morning. We're basically looking for leads," a dealer said.
At 0445 GMT, September RSS3 was indicated at 95.00-96.00 U.S. cents a kg from 95.00 cents.
September RSS1 was seen at 140.00-142.00 Singapore cents (95- 96 U.S. cents) a kg from 139.25 cents.
October TSR20 was indicated at 99.50-100.50 U.S. cents a kg from 99.75 cents.
In Kuala Lumpur, The Malaysian rubber market ended higher after a fairly quiet session with buyers keeping at the sidelines because of currency factors, dealer said.
"Although the currency wild swings has slowed down, there was still confusion over the near-term," a dealer said.
"Prices in Thailand and Indonesia are more or less on par with Malaysia. We should see enquiries from Far East soon.
Dealers said the market was also concerned about the weather condition is southern Thailand. "Few enquiries for latex were seen from Far East as buyers but producers are not selling at current levels," the trader said.
Some traders said some Far East buyers were seeking to buy SMR 20 for end-August delivery but no business has been transacted.
Dealers offered SMR CV at 295 cents, SMR L at 276, SMR 5 at 255, SMR 10 at 250, SMR 20 at 250 and latex at 191.
At the close, August RSS1 buyer rose 1.50 cents to end at 250.50 cents (95 U.S. cents) a kg and August SMR 20 buyer up two cents at 250.
The near-term outlook would depend a lot on demand factor, traders said.
In Jakarta, Indonesian tire-grade SIR20 rubber prices were stable in late morning trading on thin buying interest ahead of the weekend, traders said.
They said a U.S. company bought November shipment SIR20 at 44.125 cents/lb fob Palembang late on Thursday, but apart from a few enquiries there were no deals done so far on Friday.
"There's not much action, but gains in Tokyo futures in the morning session are seen being good for our market," one said. "The increase should draw some buyers our way."
Traders said September SIR20 offers were quoted at 44.00 cents/lb fob Medan and at 44.25 cents for October, 43.75-43.875 cents fob Palembang and Surabaya, 43.50 cents fob Padang and 43.25 cents fob Pontianak and Jambi.