TOKYO, Nov 24 (Reuters) – Benchmark TOCOM rubber futures fell more than 3 percent in early Tuesday trade, tracking a sharp drop in Shanghai futures the previous day when Japanese markets were closed for a public holiday.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for April delivery JRUc6 0#2JRU: had declined 5.6 yen to 154.1 yen per kg by 0034 GMT, after settling up 2.1 yen on Friday.
The front-month contract for November delivery expires later in the day.
The most-active rubber contract on the Shanghai futures exchange for January delivery SNRcv1 fell 2.9 percent in overnight trade.
China’s natural rubber imports in October rose 18.8 percent from a year earlier to 212,190 tonnes, while synthetic rubber imports gained 63.3 percent to 193,999 tonnes, official customs figures showed.
Global natural rubber output could drop for a second straight year in 2015 as prices near six-year lows have prompted Asian farmers to curtail tapping during their peak season.
MARKET NEWS
The U.S. dollar was quoted around 122.92 yen JPY= early on Tuesday, little changed from Friday afternoon.
Japan’s benchmark Nikkei stock average .N225 was little changed. MKTS/GLOB Base metals fell to multi-year lows on Monday on worries that a surge in the dollar could deter producers from making supply cuts in a market battling poor demand, especially in top user China.
MET/L Brent settled steady and U.S. crude slightly lower on Monday after prices were whipsawed by volatility as Saudi Arabia pledged to work toward oil price stability but traders worried about a global supply glut and signs of rising U.S.stockpiles.
O/R DATA/EVENTS (GMT)
The following data is expected on Tuesday: (Time in GMT)
– 0700 Germany Detailed GDP Q3
– 0745 France Business climate Nov
– 0900 Germany Ifo business climate Nov
– 1330 U.S. GDP second estimate Q3
– 1330 U.S. Trade data Oct
– 1400 U.S. S&P/Case-Shiller housing index Sep
– 1500 U.S. Consumer confidence Nov
(Reporting by Osamu Tsukimori; Editing by Joseph Radford)