Asian rubber futures settled higher Thursday, reaching a 13-month high as investors scrambled to cover shorts in expectation of further gains in prices due to a fall in production in major growing regions, including Thailand.
Physical prices of the USS3 grade raw material in the central markets of Thailand rose above THB75 a kilogram due to strong demand. Factories were even paying THB77.5/kg outside the central market.
The benchmark Tocom RSS3 April contract settled Y6.7 higher at Y237.3/kg.
Prices eased slightly during the night session, and the April contract ended at Y236.4/kg. Night session prices aren't included in intraday trading.
"Many investors who were short are closing their positions to cut losses," said a Tokyo-based broker with Okachi Corp.
Tocom rubber futures rose to Y235.7/kg Oct. 23 and were facing strong resistance at that level, which was breached today.
Due to prospects of rising prices, many traders opted to take delivery on the Singapore Commodity Exchange when the November contract expired last month.
RSS3 grade natural rubber deliveries on the Sicom in November are estimated around 2,300 metric tons, up from 2,040 tons in October, a senior trading executive said.
Deliveries of TSR20 grade rubber are around 1,740 tons, versus 820 tons in October, said the executive.
R1 International was the main seller of the RSS3 grade, selling around 1,380 tons at prices between 1.5 U.S cents/kg discount and 0.25 cents premium over the settlement price, depending on the port of loading.
In other news, GITI Resources Ltd. has joined Sicom as a trade member.
It is a 100% subsidiary of GITI Tire Corp., one of China's largest tire makers with seven factories in the country.
Traders said prices may now even inch up towards Y240/kg.
The benchmark March contract on the Shanghai Futures Exchange settled CNY630 higher at CNY20,365 a metric ton. China is the world's top consumer of rubber by volume.
On the Agricultural Futures Exchange of Thailand, the benchmark June RSS3 contract settled THB1.05 higher at THB82.90/kg.
Asian physical prices were higher amid a supply shortage in major growing regions. "Prices are likely to continue to rise upwards as rains have affected production in Thailand and Malaysia," said an exporter in Thailand.
Physical prices of the USS3 grade raw material in the central markets of Thailand rose above THB75 a kilogram due to strong demand. Factories were even paying THB77.5/kg outside the central market.
The benchmark Tocom RSS3 April contract settled Y6.7 higher at Y237.3/kg.
Prices eased slightly during the night session, and the April contract ended at Y236.4/kg. Night session prices aren't included in intraday trading.
"Many investors who were short are closing their positions to cut losses," said a Tokyo-based broker with Okachi Corp.
Tocom rubber futures rose to Y235.7/kg Oct. 23 and were facing strong resistance at that level, which was breached today.
Due to prospects of rising prices, many traders opted to take delivery on the Singapore Commodity Exchange when the November contract expired last month.
RSS3 grade natural rubber deliveries on the Sicom in November are estimated around 2,300 metric tons, up from 2,040 tons in October, a senior trading executive said.
Deliveries of TSR20 grade rubber are around 1,740 tons, versus 820 tons in October, said the executive.
R1 International was the main seller of the RSS3 grade, selling around 1,380 tons at prices between 1.5 U.S cents/kg discount and 0.25 cents premium over the settlement price, depending on the port of loading.
In other news, GITI Resources Ltd. has joined Sicom as a trade member.
It is a 100% subsidiary of GITI Tire Corp., one of China's largest tire makers with seven factories in the country.
Traders said prices may now even inch up towards Y240/kg.
The benchmark March contract on the Shanghai Futures Exchange settled CNY630 higher at CNY20,365 a metric ton. China is the world's top consumer of rubber by volume.
On the Agricultural Futures Exchange of Thailand, the benchmark June RSS3 contract settled THB1.05 higher at THB82.90/kg.
Asian physical prices were higher amid a supply shortage in major growing regions. "Prices are likely to continue to rise upwards as rains have affected production in Thailand and Malaysia," said an exporter in Thailand.
(Source: http://irco.biz)
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