SINGAPORE, Dec 30 (Reuters) – TOCOM rubber futures edged higher on Tuesday with bargain hunting and last session’s rebound in crude oil underpinning prices after the market slid to a one-month low on concerns over Chinese demand.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for June delivery JRUc6 0#2JRU: rose 1.2 yen to 158.2 yen per kg by 0211 GMT.
Tokyo rubber has dropped more than 70 percent from a record high of 535.7 yen a kg in 2011.The market has lost more than a quarter of its value in 2015, falling for a third consecutive year.
Investors in the rubber market are concerned about slowing economic growth in top consumer China. Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 2.4 percent from the previous week, the exchange said on Friday.
MARKET NEWS
Commodity currencies such as the Australian and Canadian dollars on Wednesday held onto gains made on a rebound in battered crude oil prices, while the dollar nudged up against the euro on the back of higher U.S.debt yields.
Asian shares glided higher in early trading on Wednesday, taking their cues from overseas gains, although investors are cautiously watching to see whether renewed selling in crude oil futures will dent sentiment. Japan’s Nikkei (XC0009692440) was up 0.6 percent, poised to gain over 9 percent for the year, though down more than 3 percent for December. MKTS/GLOB
Copper rallied on Tuesday after earlier hitting its lowest in more than a week, as funds reversed bets on lower prices in response to news of planned output cuts in China, but weak demand growth is expected to limit price gains.
Crude oil futures fell around half a dollar early as the market remained under pressure from slowing demand and high supplies, while forecasts that a cold snap in Europe and the United States would be short-lived also hurt prices. O/R
DATA/EVENTS (GMT)
The following data is expected on Wednesday: (Time in GMT)
- 1500 U.S. Pending homes index Nov USNAR=ECI
- 1530 U.S. EIA weekly crude stocks Weekly USOILC=ECI
- 1530 U.S. EIA weekly dist.
- stocks Weekly USOILD=ECI
- 1530 U.S. EIA weekly gasoline stk Weekly USOILG=ECI
(Reporting by Naveen Thukral; Editing by Richard Pullin)
