TOKYO, Feb 18 (Reuters) – Key TOCOM rubber futures gained nearly 1 percent on Monday, rebounding from Friday’s two-week low after the yen softened on the G20’s decision not to single out Japan for undertaking policies that have weakened its currency.
FUNDAMENTALS
* The key Tokyo Commodity Exchange rubber contract for July delivery <0#2JRU:> was changing hands 2.9 yen higher at 324.3 yen as of 0020 GMT. The benchmark contract fell as far as 320.0 yen on Friday, the lowest since Feb. 1.
* Japan’s expansive policies escaped direct criticism in a statement written by policymakers from the G20 at the weekend, though it also said the G20 should refrain from competitive devaluations and that monetary policy should be directed only at price stability and growth.
A weaker yen makes dollar-based commodities more expensive and can encourage players to take speculative buying positions in TOCOM rubber.
TOCOM Rubber Futures Prices on Feb 18, 2013 ( yen / kilogram)
|
Month |
Last Settlement Price |
Open |
High |
Low |
Current |
Change |
Volume |
|
Feb 2013 |
306.0 |
307.5 |
311.0 |
304.1 |
307.3 |
+1.3 |
30 |
|
Mar 2013 |
306.9 |
303.1 |
309.8 |
303.1 |
308.2 |
+1.3 |
10 |
|
Apr 2013 |
308.9 |
306.9 |
313.5 |
306.9 |
312.7 |
+3.8 |
43 |
|
May 2013 |
312.7 |
312.7 |
317.0 |
311.5 |
316.0 |
+3.3 |
94 |
|
Jun 2013 |
317.0 |
315.5 |
321.0 |
315.5 |
320.6 |
+3.6 |
74 |
|
Jul 2013 |
321.4 |
320.4 |
326.0 |
320.2 |
325.0 |
+3.6 |
1,419 |
|
Total |
|
1,670 |
|||||
MARKET NEWS
* The S&P 500 dipped in a late decline on Friday as Wal-Mart dropped following a report of a weak start to February sales, though the index just barely extended its streak of weekly gains to seven.
* The yen started a fresh week on the backfoot after Japan escaped direct criticism from the G20 on its aggressive reflationary plans that have weakened the currency and raised international complaints of competitive advantage.
* Oil prices sank on Friday and Brent futures finished their first negative week since mid-January after an unexpected dip in U.S. industrial production spurred concerns about lagging economic activity.
* Japan’s benchmark Nikkei average opened up 1.29 percent at 11,318.22 on Monday, while the broader Topix gained 1.11 percent to 952.84.
DATA EVENTS
* The following data is expected on Monday: (Time in GMT)
– 0900 Euro zone Current account
– 0900 Euro zone Net investment flow
– 1430 ECB President Mario Draghi testifies at European Parliament (Reporting by Osamu Tsukimori; Editing by Joseph Radford)
Source: Reuters
