TOKYO, July 31 (Reuters) – Key TOCOM rubber futures fell around 2 percent to a two-week low in early trade on Wednesday, hurt by a strong yen and declining Japanese equities.
FUNDAMENTALS
* The key Tokyo Commodity Exchange rubber contract for January delivery had dropped 4.8 yen to 238.9 yen by 0018 GMT. The benchmark contract earlier fell to 238.7 yen, the lowest since 235.5 yen hit on July 17.
* The dollar hovered at 97.86 yen, near a one-month trough plumbed on Monday. A stronger yen makes yen-denominated assets more expensive when purchased in other currencies.
* Goodyear Tire & Rubber Co said sales in Europe showed signs of stabilizing as more customers bought summer tyres, while lower raw material prices and cost cutting helped it post stronger-than-expected quarterly results.
* Asian rubber prices were expected to drop further due to slowing demand and rising supply, with Thailand planning to offload stocks later in the year.
Most tyremakers have been staying on the sidelines as they waited for prices to fall, although an Indonesian trader said some were making small “hand to mouth” purchases.
TOCOM Rubber Futures Price on Wednesday, July 31, 2013 (yen/kilogram)
|
Month |
Last Settlement Price |
Open |
High |
Low |
Current |
Change |
Volume |
|
Aug 2013 |
239.8 |
237.7 |
237.7 |
235.0 |
235.3 |
-4.5 |
14 |
|
Sep 2013 |
240.1 |
239.3 |
239.3 |
235.5 |
236.3 |
-3.8 |
21 |
|
Oct 2013 |
240.7 |
239.8 |
239.8 |
235.7 |
238.5 |
-2.2 |
64 |
|
Nov 2013 |
241.3 |
239.7 |
240.3 |
236.7 |
239.3 |
-2.0 |
25 |
|
Dec 2013 |
242.7 |
240.6 |
242.0 |
237.7 |
241.9 |
-0.8 |
2,066 |
|
Jan 2014 |
243.7 |
242.0 |
243.1 |
238.7 |
243.0 |
-0.7 |
4,066 |
|
Total |
|
6,256 |
|||||
MARKET NEWS
* The S&P 500 and Nasdaq ended higher on Tuesday, lifted by gains in the technology sector.
* Japan’s benchmark Nikkei average opened down 0.98 percent at 13,733.55 on Wednesday, while the broader Topix shed 0.62 percent to 1,141.45.
* The dollar struggled to extend modest overnight gains early in Asia on Wednesday as investors trod cautiously ahead of the outcome of the Federal Reserve policy review that could see the central bank drive home a dovish message.
* Oil slipped on Tuesday and the spread between WTI crude and Brent widened as traders bet that the fund-fuelled rapid run-up in U.S. prices had gone too far.
DATA EVENTS
* The following data is expected on Wednesday: (Time in GMT)
– 0600 Germany Retail sales
– 0755 Germany Unemployment rate
– 0900 Euro zone Inflation
– 0900 Euro zone Unemployment rate
– 1215 U.S. ADP employment report
– 1230 U.S. Q2 GDP advance
– 1345 U.S. Chicago PMI
– 1430 U.S. EIA weekly crude stocks
– 1800 Federal Open Market Committee announces outcome of policy meeting
(Reporting by Osamu Tsukimori; Editing by Joseph Radford)
Source: Reuters
