By Lewa Pardomuan
SINGAPORE, Dec 3 (Reuters) – Tokyo rubber futures are likely to take their cue from a string of economic data that may offer a pointer to the health of the global economy, while sugar buyers will seek bargains this week because of ample stocks, dealers said on Monday.
The most active rubber contract on the Tokyo Commodity Exchange (TOCOM), currently May, extended gains to their highest since late October as promising manufacturing data from main consumer China offset the country’s rising rubber inventory.
“We are going to see a couple of data elements, including the U.S. employment data on Friday. This is going to give us a better gauge of the economy and how commodities react to an economic recovery,” said Ker Chung Yang, senior investment analyst at Phillip Futures in Singapore.
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“Political turmoil is also one of the concerns,” he said, adding that he expected low prices to be capped around 245 yen, with a possible resistance at around 275 yen.
TOCOM could also track movements in the oil market, which is supported by political tension in the Middle East. But concerns over the U.S. economy linger ahead of the jobs data, which are likely to show employment growth slowed to just 100,000 jobs last month from 171,000 in October.
Source: Reuters
