TOCOM Rubber recovers on weak Yen

International Market
Tokyo May futures are looking firm due to weak Yen and strong crude. The May future has immediate resistance at 381.30 and 382.6. Support will be at 379.20 and 377.10. Minor profit booking is expected in the late noon trade.
Domestic Market
In the domestic market prices may remain sideways due to weak technicals. Lack of liquidity in the financial system also poses threat to the price in the short term. Rs. 200.78 immediate support, if it trades above more buying interest can be seen. On the other hand if it falls below this price then it may test 200.51 and 199.55.
Analysis of Tokyo Rubber Market

The market rebounded slightly and finished the session at 377.2 yen with a gain of 1.0 yen due to firmer Shanghai rubber market and weakened yen.
Following the night session, closed subtle higher by 0.8 yen at 377.0 yen with a tiny volume of958 lots transacted, mainly driven by a gain in oil prices, a little shy of 90 USD, the day session resumed trading relatively lower at 375.3 yen affected by sharp losses in oil prices overwhelming weakened yen and fell down to 373.8 yen after opening, at which 5-day moving average price stood. With a help of bullish Shanghai rubber market open, the market gradually recovered from earlier losses and rose as high as 377.0 yen to fill the gap with closing price in the previous night session.
However, profit taking selling seemed to be strengthened when it reached closer to 377.0 yen so the market mostly hovered around 376 yen level throughout the session and tried 377.0 yen several times afterward. As the market construced a penant chart pattern on a quiet mood, technical buying helped break 377.0 and extended a gain to 377.7 yen toward closing.
Although the Shanghai rubber market once broke above 33.000 yuan and stayed in a positive territory, it suddenly plunged to huge minus side after TOCOM rubber market closed and finally closed at 32,200 yuan with a loss of 485 yuan.
Since fundamental factors are still firm and spread for TOCOM against SICOM indicates that TOCOM is relatively undervalued under upward trend chart, bullish note could be continued in a middle term in order to try a psychological resistance of 380.0 yen while profit taking selling could lessen the driving force at an immediate front.
Rubber News Analysis
Rubber News

Rubber increased on speculation record China car-sales may boost demand from the world’s biggest user, and as cash prices in Thailand climbed to the highest ever.
May-delivery rubber on the Tokyo Commodity Exchange gained 0.3 percent to settle at 377.2 yen per kilogram ($4,492 a metric ton). The price reached a 30-year high of 383 yen on Nov. 11 and has gained 37 percent this year. All contracts opened below previous day closing price. Though the market was positive today, the gains were limited to maximum of 1 yen. In the night session all contracts opened below the previous closing prices. The highest prices were below the highest level of day session. Most active May deliveries rose as high as 376.6 yen as 377.7 yen in the day session and dropped to 373.7 yen before closing at 375.4 yen making loss of 1.8 yen. January deliveries made the highest loss of 4 yen. There was no trade for spot month in nthe night session. Japan’s crude rubber inventories totaled 7,375 tons as of Nov. 20, down 2.3 percent from 10 days earlier. Today the market opened with positive tone. All the contracts are trading with profits. The futures opened slightly below previous day closing prices, soon the prices rose as high as 381.3 yen.
Later the prices climbed down as low as 367.8, but rose further and are now trading with profits ranging from 1 to2 yen. Most active May deliveries opened 0.60 yen below the previous day closing price and rose as high as 381.3 yen. But the prices came down to 375.3 and again climbed to trade at 379.2 making gain of 2 yen.
Shanghai market witnessed natural rubber prices trading with minor gains except in the case January deliveries which recorded a loss 250 yuan. Most active May deliveries rose as high as 33100 yuan but came down to 32100 yuan before settling at 32760 yuan with gain of 75 yuan. The highest gain of 210 yuan was made by July deliveries. The natural stock piles with Shanghai Futures Exchange rose by 210 tons to 41355 tons.
In Thailand natural rubber RSS3 futures traded with losses 1 to 3.40 baht per kg. The prices of futures rose as high as 137 baht per kg. Most active July contracts closed with loss of 3.40 baht per kg. The market to day opened with positive notes. June and July, which are the only contracts quoted in the market at 9.02 am, are trading at 137.55 baht and 137.70 baht per kg making gains of 2.15 baht and 2.10 baht per kg.
In Malaysia SMR20 natural rubber physical FOB prices rose further to 1358.50 sen per kg for buyers and 1372 sen per kg for sellers. The market is said to be very steady.
Auto Sector News
China’s passenger car sales jumped to a record in November, climbing 27 percent from a year ago. Sales exceeded 1.28 million cars last month, up 10.5% from October Domestic passenger car sales jumped by 20.79 per cent to 1,61,497 units in November, compared to 1,33,703 units in the same month last year, whereas motorcycle sales grew by 15.61 % to 7,10,182 units from 6,14,274 units in the same month last year. Total sale of vehicles across categories registered a growth of 17.81 per cent.
Tata Motors, India’s largest vehicle maker, today launched a new offering in the Winger range, the Tata Winger Platinum in this city, priced at Rs 739,724 (ex-showroom).
Crude oil News
Oil’s rally to a more-than-two-year high is unlikely to coax OPEC into raising production quotas at this week’s meeting in Ecuador, as member nations consider the global recovery strong enough to withstand price gains.
Oil declined after breaking through $90 a barrel yesterday as a stronger dollar undermined the appeal of commodities, and after an industry report showed U.S. gasoline supplies surged the most since January. Brent crude rose 0.53% or 0.480 points and was trading at 91.250.
India News
India’s first auction of solar power permits may get derailed as plant builders say borrowing costs are too high to finance the projects, a key part of government efforts to reduce oil imports.
Tata Power Co., India’s biggest non-state power developer, said it isn’t participating in the auction because it would have trouble raising loans. Azure Power said it has found another way to fund its project because of unattractive rupee lending terms. Developers offering to sell their electricity at the cheapest rate will be picked and will gain preferential tariffs and a designated buyer of their power, according to the government.
Toyota Tsusho Corp, a Toyota Motor Corp group company, says it will build a rare earth processing plant in India and start shipping 3,000 to 4,000 tonnes a year of the minerals to Japan in 2012.
Weather Report
In Malaysia at Kuala Lumpur thunderstorms and scattered rain are expected. Temperature may go up to 32 °C during day time. 60 per cent chance of precipitation is expected during the day time and night time. Temperature is expected to be at 23 °C at the low level.
According to the Jakarta Observatory, thunder storms and scattered clouds is expected. Day temperature may go up to 29 °C. There is 60 per cent chance for precipitation and temperature at low level will be 24 °C.
In Thailand, the climate is expected to be partly cloudy with 10 -20 per cent chance of precipitation. Temperature may go up to 31°C during day time. Temperature is expected to be at 23 °C at the low level.
In Beijing, China, 0 percent chance of precipitation is expected. The climate is expected to be sunny and clear. Temperature may go up to 6°C during day time. Temperature is expected to be at -04°C at the low level.
In Singapore, thunderstorms and scattered clouds are expected with 60 per cent chance of precipitation. Temperature may go up to 32 °C during day time. Temperature is expected to be at 24 °C at the low level.
In Thiruvananthapuram, thunderstorms and scattered rain are expected with 60 percent chance of precipitation. Temperature may go up to 29 °C during day time.
Temperature is expected to be at 24 °C at the low level. In Kottayam, scattered rain with thunderstorms is expected with 60 per cent chance of precipitation.