TOKYO, Oct 26 (Reuters) – Benchmark TOCOM rubber futures edged lower on Wednesday after Shanghai futures tumbled in overnight trade and as oil prices fell on concerns over a global fuel glut.
FUNDAMENTALS
The Tokyo Commodity Exchange’s (TOCOM) new rubber contract for April delivery JRUc6 0#2JRU: was at 177.7 yen ($1.71) per kg as of 0100 GMT, down 0.2 yen from its opening price of 177.9 yen.
This is the second monthly roll-over since TOCOM adopted a new trading system in September.
Under the system, the new front-month contract starts trading from the morning open, instead of the open of evening trade the previous day.
TOCOM rubber trades in two sessions, day trading and evening trading, and apart from roll-over days for the new front-month contract, the evening trade is counted as the following day’s trade.
The October contract expired at 172.4 yen on Tuesday.
The most-active rubber contract on the Shanghai Futures Exchange for January delivery SNRcv1 plunged 450 yuan to 13,675 yuan ($2,017.56) in overnight trade.
MARKET NEWS
Oil prices fell on Wednesday, pulled down by a report of surging U.S.crude inventories, rising output in Nigeria and squabbling among producers about a planned output cut, which together re-ignited concerns over a global supply glut.
The U.S. dollar crept 0.1-percent lower against the yen to 104.13 JPY= , down from a roughly three-month high of 104.87 yen touched in overnight U.S.trading.
Japan’s benchmark Nikkei stock average (XC0009692440) inched down on Wednesday, following in the footsteps of Wall Street, which pulled back on disappointing earnings. MKTS/GLOB
DATA/EVENTS (GMT)
The following data is expected on Wednesday: (Time in GMT)
0600 Germany GfK consumer sentiment Nov
0600 Germany Import prices Sep
0645 France Consumer confidence Oct
1230 U.S. Wholesale inventory Sep
1400 U.S. New home sales Sep
($1 = 104.1400 yen)
($1 = 6.7780 Chinese yuan renminbi)
(Reporting by Yuka Obayashi; Editing by Joseph Radford)
