Rubber pared a second weekly advance on speculation that improving U.S. economic data may bring forward stimulus cuts while a strengthening Japanese currency reduced the appeal of yen-based contracts.
Futures for delivery in May on the Tokyo Commodity Exchange lost as much as 1.4 percent to 270.5 yen a kilogram ($2,656 a metric ton) before trading at 273.4 yen at 11:20 a.m. local time. Futures climbed 1.2 percent this week.
TOCOM Rubber Futures Prices on Friday, December 06, 2013 (yen/kilogram)
|
Month |
Last Settlement Price |
Open |
High |
Low |
Current |
Change |
Volume |
|
Dec 2013 |
267.0 |
266.1 |
267.0 |
265.0 |
265.6 |
-1.4 |
11 |
|
Jan 2014 |
266.8 |
266.8 |
267.8 |
265.0 |
267.2 |
+0.4 |
295 |
|
Feb 2014 |
268.3 |
267.3 |
269.4 |
266.1 |
269.1 |
+0.8 |
191 |
|
Mar 2014 |
269.7 |
268.6 |
269.8 |
267.3 |
269.5 |
-0.2 |
187 |
|
Apr 2014 |
272.5 |
272.0 |
272.5 |
268.9 |
271.8 |
-0.7 |
648 |
|
May 2014 |
274.4 |
273.5 |
275.0 |
270.5 |
273.8 |
-0.6 |
4,455 |
|
Total |
|
5,787 |
|||||
The yen headed for its first weekly advance in six against the dollar before Japan releases gross domestic product data on Dec. 9. U.S. payrolls data due today may encourage the Federal Reserve to consider trimming stimulus as early as this month.
“Expectations of Fed tapering in December are negative for the rubber market and other commodities,” said Ryuta Imazeki, an analyst at Tokyo-based Okachi & Co. The stronger yen also weighed on sentiment, he added.
The U.S. posted the fastest annualized growth last quarter since the start of 2012 and jobless claims unexpectedly fell as the focus turns to today’s November non-farm payrolls, projected to rise by 185,000 workers. Fed policy makers meet Dec. 17-18 after minutes of their October gathering showed they may reduce $85 billion of monthly bond buying should the U.S. economyimprove as anticipated.
China bought 60,500 tons of rubber for government stockpiles after local prices slumped, according to two executives with direct knowledge of the transactions. The purchase is in addition to an estimated 96,000 tons bought by the government in the past month.
Production from growers representing 92 percent of global supplies gained 3.1 percent to 10.08 million tons in 11 months through November, the Association of Natural Rubber Producing Countries said in a report yesterday. Exports in the period rose 6.4 percent to nearly 8 million tons, it said.
Futures for May delivery on the Shanghai Futures Exchange were little changed at 19,420 yuan($3,190) a ton. Thai rubber free-on-board was unchanged at 81.95 baht ($2.54) a kilogram on Dec. 4, according to the Rubber Research Institute of Thailand. Thai markets were closed yesterday for a holiday.
Source: Bloomberg
