Tokyo futures fall on weaker oil, econ worry (Sept 5)

Tokyo futures fall on weaker oil, econ worry (Sept 5)
September 5, 2011





TOKYO, Sept 5 (Reuters) – Key Tokyo rubber futures fell on Monday after weak U.S. jobs data raised concerns about the economy while a drop in oil prices weighed on investor sentiment.

FUNDAMENTALS

* The key Tokyo Commodity Exchange rubber contract for February delivery <0#2JRU:> was down 1.7 yen or 0.5 percent at 367.8 yen per kg as of 0015 GMT.

* The market ended last week up 1.9 percent for its second straight weekly gain and the biggest weekly increase in seven weeks.

* The most active Shanghai rubber contract for January delivery inched down 0.6 percent to close at 33,750 yuan ($5,288.891) per tonne on Friday. Volume slipped to 457,812 lots from Thursday’s 515,462 lots.

* Oil prices extended losses in early Asia on Monday, after ending lower ahead of the Labor Day holiday weekend on Friday when a bleak jobs report stoked recession worries, outweighing production shut-ins in the Gulf of Mexico as Tropical Storm Lee formed near the Louisiana coast.

* The euro fell to fresh three-week lows against the dollar in Asia on Monday, while commodity currencies also came under pressure as worries about the euro zone debt problems and weak U.S. payrolls data hit appetite for riskier assets.

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MARKET NEWS

* U.S. employment growth ground to a halt in August, reviving recession fears and piling pressure on President Barack Obama and the Federal Reserve to provide more stimulus to aid the economy.

* Ford Motor plans to more than double its offers across vehicle segments in China, the world’s top market, as it speeds up the launch of new models, a senior executive said on Saturday.

* Tokyo rubber futures could slip to 368.8 yen ($4.80) a kg at the end of September as concerns about the global economy spurred speculators to switch to safe haven assets such as gold, and the lower prices would attract purchases from tyre makers.

* Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 13.5 percent last week, the exchange said on Friday.

* German automotive association VDA raised its 2011 outlook for the car market in Europe’s biggest economy on Friday, saying it now sees more than 3.1 million new car registrations.

* Japan’s benchmark Nikkei stock average opened down 1.4 percent at 8,828.46 on Monday after Friday’s U.S. employment report heightened fears that another recession might be unavoidable.

* U.S. stocks tumbled 2 percent on Friday after the jobs report.





Rubber prices on 05 Sept
September 5, 2011





London — On Tokyo’s Tocom Exchange, prices for the six-month contract eased by 10 yen over the weekend, trading at around yen 360 ($4.68) per kg on Monday 5 Sept. Shorter-dated prices were trading around at yen 352.

In Singapore, SGX said prices for RSS3 for delivery in March 2012 were down slightly, at $4.74, while short-dated contracts were trading around $4.67. TSR20 for delivery in January 2012 was trading around $4.61.

In India, the NMCE said prices were down on last week’s prices, with September deliveries priced at Rs 216 ($4.70).

In China, the Shanghai Futures Exchange also saw prices ease by a faction of a yuan, with September deliveries trading at around Yuan 33.0 ($5.16) per kilo.