TOKYO, Oct 27 (Reuters) – New benchmark TOCOM rubber futures fell to a more than 6-year low in light trade on Tuesday, weighed down by slumping oil prices, persistent worries about slowing demand in top consumer China, and weaker Shanghai rubber futures.
FUNDAMENTALS
The Tokyo Commodity Exchange new rubber contract for April delivery was trading down 4.5 yen, or 2.7 percent, at 160.7 yen per kg from its opening price of 165.2 yen by 0107 GMT, after touching 160.3 yen, the lowest since July, 2009.
The most-active rubber contract on the Shanghai futures exchange for January delivery SNRcv1 was trading down 2.8 percent at 10,805 yuan per tonne.
China’s ruling Communist Party opened a key meeting on Monday that will focus on financial reforms and how to maintain growth of around seven percent and more broadly map out economic and social targets for the next five years.
New U.S.single-family home sales fell to near a one-year low in September after two straight months of gains, suggesting a temporary cooling in the market for new houses.
MARKET NEWS
Crude prices fell again on Monday, staying under pressure after two straight weeks of losses, on worries that the oversupply in oil products would swell from unseasonably warm weather and the waning maintenance cycle for U.S.refineries.
O/R The U.S. dollar slipped about 0.2 percent to 120.89 yen JPY= , ahead of a Bank of Japan meeting on Friday. FRX/ Japan’s benchmark Nikkei stock average edged lower in Tuesday trade, as investors took cover ahead of central bank meetings in the United States and Japan later in the week.
DATA/EVENTS (GMT) The following data is expected on Tuesday: (Time in GMT)
1230 U.S. Durable goods orders Sep
1300 U.S. S&P/Case-Shiller housing index Aug
1400 U.S. Consumer confidence Oct Federal Open Market Committee starts two-day policy meeting
(Reporting by Yuka Obayashi; Editing by Richard Pullin)
