TOKYO, Jan 14 (Reuters) – Benchmark TOCOM rubber futures fell around 2 percent in early Thursday trade, as a stronger yen prompted some profit-taking following a more than 5 percent jump a day earlier.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for June delivery JRUc6 0#2JRU: fell 2.7 yen to 152.3 yen per kg by 0036 GMT. Rubber settled up 8.1 yen, or 5.5 percent, on Wednesday, rising from near seven-year lows on the back of a Thai measure to buy rubber to support farmers.
Steps announced this week by Thailand’s ruling junta to help rubber producers grappling with plunging prices do not go far enough, some farmers said on Wednesday.
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The cabinet has promised to buy some rubber directly from farmers at rates above market levels and announced other measures including a plan to open up rubber processing factories.
Crude rubber inventories at Japanese ports stood at 10,229 tonnes as of Dec. 31, up 4.7 percent from the last inventory date and the highest level since Nov.10, data from the Rubber Trade Association of Japan showed on Thursday.
MARKET NEWS
The U.S. dollar was quoted around 117.31 yen JPY= , compared with around 118.23 yen on Wednesday afternoon. FRX/ A stronger yen makes Japanese currency-denominated assets more expensive when purchased in other currencies.
Japan’s benchmark Nikkei stock average .N225 was down 3.7 percent hurt by the stronger yen.
Copper rebounded on Wednesday from the 6-1/2 year low it hit a day earlier after upbeat Chinese trade data helped soothe concerns about demand for metals in the world’s second-biggest economy.
Brent crude ended 2 percent lower on Wednesday after falling below $30 a barrel for the first time since April 2004 as a growing stocks of oil in the United States stoked market fears about demand. O/R
DATA/EVENTS (GMT)
The following data is expected on Thursday: (Time in GMT)
- 0700 Germany Wholesale price index Dec
– 0900 Germany GDP 2015
– 1330 U.S. Import prices Dec
– 1330 U.S. Export prices Dec
– 1330 U.S. Weekly jobless claims
(Reporting by Osamu Tsukimori; Editing by Richard Pullin)
