TOKYO, Nov 28 (Reuters) – Benchmark TOCOM rubber futures fell on Monday as investors cashed in on a rally that had boosted prices to a 1-1/2 year high in recent days, with weaker oil prices and a higher yen also hurting investors’ appetite for risk.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for May delivery JRUc6 0#2JRU: was down 3.0 yen, or 1.3 percent, at 233.9 yen ($2.09) per kg as of 0125 GMT after hitting its highest level since June 2015 at 241.7 yen on Friday, making for a 13 percent climb last week. RUB/T
Top OPEC oil exporter Saudi Arabia has told the producer group it will not attend talks on Monday with non-OPEC producers to discuss limiting supply, sources said, as it wants to focus on having consensus within the organisation first.
Rubber inventories in warehouses monitored by the Shanghai Futures Exchange fell 35.1 percent from a week earlier, the exchange said on Friday.
China’s imports of natural rubber fell 13.23 percent in October from a year earlier.
India’s natural rubber production in October rose 15.4 percent from a year ago to 60,000 tonnes, the state-run Rubber Board said on Friday, as an improvement in prices prompted farmers to increase tapping.
MARKET NEWS
U.S.crude fell nearly 4 percent on Friday, dragged down by uncertainty over whether the Organization of the Petroleum Exporting Countries will reach an output deal, after Saudi Arabia said it will not attend talks on Monday with non-OPEC producers to discuss supply cuts.
The U.S. dollar was down 0.5 percent at 112.680 yen JPY= following a rise to an eight-month high of 113.900 last week as investors braced for upcoming events that could at least temporarily knock the greenback’s bull run off-course. FRX/
Japan’s benchmark Nikkei stock average (XC0009692440) was down 0.4 percent on Monday after key stock indexes on Wall Street swept to record intraday and closing highs on Black Friday thanks to gains in consumer staple and technology shares. MKTS/GLOB
DATA/EVENTS (GMT)
The following data is expected on Monday: (Time in GMT)
1000 Euro zone Business climate Nov
1000 Euro zone Consumer confidence Nov
1530 U.S. Dallas Fed manufacturing index Nov
($1 = 112.5300 yen)
($1 = 112.2500 yen)
($1 = 112.0800 yen)
(Reporting by Yuka Obayashi; Editing by Kenneth Maxwell)
