TOKYO, Feb 13 (Reuters) – Key TOCOM rubber futures edged up on Wednesday, though investors were watching a volatile yen and prices could struggle to top a 10-month high hit last week, with trade thinned by the closure of top buyer China for the Lunar New Year holiday.
FUNDAMENTALS
* The most-active Tokyo Commodity Exchange rubber contract for July delivery <0#2JRU:> was trading at 332.4 yen per kg as of 0038 GMT, up 0.8 yen or 0.2 percent from the previous close.
* Last week, a fall in the yen versus the dollar helped the contract rise as far as 337.8 yen, the highest for any benchmark since late March 2012.
* The dollar stayed above an earlier low of around 93.27 yen after cautious comments from an official from the Group of Seven over excessive movements in Japan’s currency dragged it down from a near 33-month high of 94.41.
* There was bound to be volatility in the Japanese currency in the run-up to the Feb 15-16 G20 meeting given its breathtaking decline had drawn criticism from some of Japan’s international peers. The outcome of the Bank of Japan’s policy meeting due on Thursday is also awaited.
* Markets in China are closed this week for the Lunar New Year holiday.
* Goodyear Tire & Rubber Co posted a stronger-than-expected quarterly profit on Tuesday but cut its 2013 forecast due to weakness in the European automotive market.
TOCOM Rubber Futures Prices on Feb 13, 2013 ( yen / kilogram)
|
Month |
Last Settlement Price |
Open |
High |
Low |
Current |
Change |
Volume |
|
Feb 2013 |
310.1 |
311.5 |
313.5 |
308.9 |
308.9 |
-1.2 |
33 |
|
Mar 2013 |
311.1 |
312.5 |
314.1 |
309.9 |
309.9 |
-1.2 |
28 |
|
Apr 2013 |
316.0 |
317.8 |
318.8 |
315.0 |
315.1 |
-0.9 |
44 |
|
May 2013 |
321.4 |
322.9 |
323.8 |
319.7 |
320.0 |
-1.4 |
148 |
|
Jun 2013 |
327.1 |
327.3 |
329.0 |
324.9 |
325.1 |
-2.0 |
306 |
|
Jul 2013 |
331.6 |
332.2 |
333.6 |
329.5 |
329.9 |
-1.7 |
2,538 |
|
Total |
|
3,097 |
|||||
MARKET NEWS
* The TOCOM market on Tuesday successfully started trading of soybean, corn, red bean and raw sugar futures contracts. Japan’s biggest commodity exchange took over the four contracts as scheduled from the Tokyo Grain Exchange, which is officially closed later this year.
* Japan’s Nikkei share average edged lower on Wednesday as a pause in the yen’s decline triggered profit-taking on stocks that have gained sharply such as exporters.
* Oil prices rose on Tuesday after the U.S. Energy Information Administration (EIA) said world oil demand would increase faster than previously expected in 2013 and OPEC raised its outlook for the amount of crude it will need to pump this year.
DATA EVENTS
* The following data is expected on Wednesday: (GMT)
0700 Germany Wholesale price index
1000 Euro zone Industrial production
1200 U.S. Weekly mortgage market index
1330 U.S. Import prices
1330 U.S. Export prices
1330 U.S. Retail sales
1500 U.S. Business inventories
1530 U.S. EIA petroleum status report
n.a. India Jan trade data
(Reporting by Risa Maeda; Editing by Ed Davies)
Source: Reuters
