Tokyo futures fall, eyes on Shanghai, oil (Aug 17)
August 17, 2011
TOKYO, Aug 17 (Reuters) – Key Tokyo rubber futures fell on Wednesday amid lingering bearish sentiment from the day before when the market settled below key technical levels, with investors seeking clues from the Shanghai futures market and oil prices.
FUNDAMENTALS
* The benchmark rubber contract on the Tokyo Commodity Exchange <0#JRU:> for January delivery fell 3.9 yen or 1 percent to 359.9 yen per kg, a one-week low, as of 0012 GMT.
* The most active Shanghai rubber contract for January delivery closed at 33,785 yuan ($5,286) per tonne on Tuesday, down 1.5 percent from Monday’s close of 34,310 yuan per tonne. Volume picked up to 547,854 lots from 464,684 lots on Tuesday.
* The euro struggled to make any headway in Asia on Wednesday, having suffered a minor setback on a lack of progress on a common bond, while the Swiss franc stayed under pressure on expectations of imminent action to curb its strength.
* Oil recovered in early Asian trade on Wednesday after falling the day before when a meeting between French and German leaders failed to ease concerns about the euro zone debt crisis.
* For top stories on the rubber market and other news click , or
MARKET NEWS
* Under heavy pressure to restore confidence in the euro zone following a dramatic market slump, French President Nicolas Sarkozy and German Chancellor Angela Merkel stopped short of increasing the bloc’s rescue fund but vowed to stand side-by-side in defending the euro and laid the groundwork for future fiscal union.
* U.S. industrial output recorded its best gain in seven months in July as the auto sector bounced back from supply disruptions wrought by Japan’s devastating earthquake in March.
* Japanese automaker Suzuki Motor Corp will increase production of sport utility vehicles (SUVs) at its Iwata facility in Shizuoka, south of Tokyo, by adding a second shift to meet rising export demand, the Nikkei business daily reported.
* Natural rubber prices in India are likely to trade lower this week following weakness in the world market and due to a decline in demand.
* Japan’s benchmark Nikkei share average opened down 0.65 percent at 9,047.89 on Wednesday.
* U.S. stocks fell on Tuesday after three days of gains when a meeting between the heads of France and Germany failed to quell fears about euro zone leaders’ ability to contain the region’s sovereign debt woes.
Spot rubber declines on global cues
August 17, 2011
KOTTAYAM, AUGUST 16:
Domestic rubber prices declined further on Tuesday. On the spot, prices lost strength as buyers stayed away, following declines in the domestic and international futures. “We are expecting an all-round selling pressure in the market once RSS 4 break the immediate support level of Rs 200 a kg,” an observer said. Volumes were better.
Sheet rubber weakened to Rs 200 (202.50) a kg, according to traders. The grade dropped to Rs 201 (203) a kg both at Kottayam and Kochi, as reported by the Rubber Board.
The September series weakened to Rs 198.70 (201.56), October to Rs 197.45 (200.72), November to Rs 197.50 (200.90), December to Rs 198 (202.58) and January to Rs 200.50 (204.00) while the February series finished the debut trading session at Rs 201 a kg for RSS 4 on the National Multi Commodity Exchange.
The August futures moved down to ¥353 (Rs 208.92) from ¥356.8 during the day session and then to ¥351 (Rs 207.75) a kg in the night session on the Tokyo Commodity Exchange. RSS 3 (spot) slipped to Rs 211.88 (212.83) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 200 (202.50); RSS-5: 195 (199); ungraded: 185 (191); ISNR 20: 197 (202) and latex 60 per cent: 130 (132).
Wednesday, August 17, 2011
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