Benchmark TOCOM rubber futures tumbled to a two-week low on Wednesday (May7) as trading resumed after a four-day weekend in Japan, hurt by plans by exporter Thailand to sell supplies from state stockpiles.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for October delivery fell as much as 4.8 percent and was down 8.0 yen at 199.3 yen per kg by 0027 GMT, after trading at its lowest level since April 22.
The contract finished 0.1 yen higher on Friday at 207.3 yen.
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Thai rubber farmers will protest against the government’s plan to sell 200,000 tonnes of rubber from its stocks as they fear the sales will drag falling prices down further, the head of a group representing farmers said on Tuesday (May 6).
Bank of Japan board members agreed that consumer spending remains buoyant following an increase in the sales tax rate in April, due to a tight labour market and improving wages, minutes of the central bank’s April 7-8 meeting showed on Wednesday (May 7)
China’s economic growth is likely to slow to 7.4 percent in 2014 from 7.7 percent last year due to the government’s drive to curb credit risk and excessive factory capacity, the OECD said on Tuesday (May 6)
Activity in China’s manufacturing sector contracted for a fourth consecutive month in April, a private survey showed on Monday (May 5), adding to questions about whether the world’s second-largest economy is still losing momentum.
MARKET NEWS
The U.S. dollar was quoted around 101.65 yen early on Wednesday (May 7), just above a three-week low hit on Tuesday (May 6) as ongoing clashes in Ukraine drove buying in the safe-haven Japanese currency.
Japan’s benchmark Nikkei stock average fell 1.8 percent in Wednesday (May 7) trade, following the broad fall in U.S. equities on Tuesday(May 6)
U.S. crude futures settled nearly unchanged on Tuesday (May 6), but later rose in post-settlement trade after industry group the American Petroleum Institute reported that crude stocks decreased last week, defying analysts’ expectations for a build.
Reuters
