TOKYO, July 17 (Reuters) – Benchmark Tokyo rubber futures rose early on Wednesday in line with a firmer tone in the night session, but volume was thin as investors await clues on the timing of any wind-back in economic stimulus.
FUNDAMENTALS
* The Tokyo Commodity Exchange (TOCOM) rubber contract for December delivery was trading up 2.1 percent at 239.5 yen per kg as of 0047 GMT, rising after two sessions of losses.
* Traders said Wednesday’s gains followed a firmer tone in the night session, but pointed to short-covering rather than any change in fundamentals.
* Fed Chairman Ben Bernanke is due to give testimony to a U.S. congressional panel from 1400 GMT. Analysts expect him to reiterate previous remarks that U.S. monetary policy will remain accommodative, but will will look for signals on the U.S. central bank’s bond-buying program.
* The International Rubber Study Group trimmed its global demand growth outlook to 3.8 percent for this year, down a 4 percent rise previously, due to lingering worries about consumption in recession-struck Europe.
TOCOM Rubber Futures Price on Wednesday, July 17, 2013 (yen/kilogram)
|
Month |
Last Settlement Price |
Open |
High |
Low |
Current |
Change |
Volume |
|
Jul 2013 |
229.5 |
229.3 |
233.2 |
229.3 |
231.8 |
+2.3 |
7 |
|
Aug 2013 |
231.7 |
234.6 |
234.9 |
234.5 |
234.9 |
+3.2 |
9 |
|
Sep 2013 |
233.1 |
233.8 |
236.9 |
233.8 |
236.9 |
+3.8 |
12 |
|
Oct 2013 |
233.4 |
236.9 |
237.7 |
236.5 |
237.1 |
+3.7 |
14 |
|
Nov 2013 |
233.9 |
236.3 |
239.1 |
236.3 |
237.6 |
+3.7 |
301 |
|
Dec 2013 |
234.6 |
235.5 |
239.6 |
235.5 |
238.3 |
+3.7 |
2,597 |
|
Total |
|
2,940 |
|||||
MARKET NEWS
* The dollar stayed on the defensive in early Asian trade on Wednesday as investors suffered a case of cold feet ahead of Federal Reserve Ben Bernanke’s semi-annual testimony in Congress later in the day.
* Japan’s Nikkei share average declined on Wednesday as weakness in global markets and the strong yen soured sentiment, with investors also cautious ahead of the U.S. Fed chairman’s appearance before Congressional committees.
* Most commodities rose on Tuesday, with Brent crude oil settling at a 3-1/2-month high as U.S. gasoline prices surged to four-month highs, while copper and gold also rose on a weaker dollar.
DATA EVENTS
* The following data is expected on Wednesday: (Time in GMT)
0200 China Foreign direct investment
1230 U.S. Building permits
1230 U.S. Housing starts
1400 Federal Reserve Chairman Ben Bernanke delivers
semiannual testimony before Congress committee
1800 U.S. Federal Reserve Beige Book
(Reporting by Yuka Obayashi; Editing by Richard Pullin)
Source: Reuters
