Asian rubber higher

Tokyo rubber futures were mostly higher on Tuesday except for the benchmark contract, which fell on a stronger yen against the dollar, traders said.
The benchmark distant November TOCOM rubber contract closed at 295.3 yen ($2.57) per kg, down from 295.8 yen on Monday. Other contracts rose between 2.3 and 6.1 yen. "The yen is stronger and maybe that spurred liquidation selling (on the November contract)," a dealer in Tokyo said.
A stronger yen normally prompts selling in Japanese rubber futures, which sets the tone for global rubber prices. The currency was quoted 114.77 yen per dollar versus 115.52 on Monday. But strong immediate demand and lingering concern on tight supplies from top producer Thailand lent support to the rubber market, traders said.
"Supply seems to be uncertain. But there is big demand for nearby shipment and that is holding the whole market," said the Tokyo dealer, who put support at 290 yen and resistance at 305-310. In the physical market, few deals were noted, with buyers waiting for prices to stabilise.
"People see the rubber market is still volatile and prices can go up again. So buyers will not buy much," said a trader in Jakarta. Some deals were noted overnight for Indonesia tyre-grade SIR 20 at 102.5 US cents per pound ($2.26 a kg), free on board Plumbing in South Sumatra for August shipment. Another deal was for September shipment at 103.25 US cents per pound ($2.28 a kg), free on board Begawan port in North Sumatra.
On Tuesday offers for SIR 20 stood at between 102.75 and 103.50 US cents per pound for August shipment, free on board basis Plumbing and Begawan. In Thailand wet weather persisted in some rubber-growing areas, which might squeeze supplies.
"We have had some rains these few days in some areas and that will affect supply a bit," said a trader in the southern Thai City of Hat Yai.
Offers for Thai benchmark RSS3 rubber sheet were quoted at $2.70 per kg, free on board, down from $2.73 on Monday. Tyre-grade Standard Thai Rubber or STR 20 block for August shipment was offered steadies at $2.50 a kg, free on board.