TOKYO, May 20 (Reuters) – Benchmark TOCOM rubber futuresinched down on Tuesday, after jumping more than 4 percent in theprevious session, as worries about China’s economy capped gainsdriven by a fall in inventories.
FUNDAMENTALS
* The key Tokyo Commodity Exchange rubber contract forOctober delivery traded 0.3 yen lower at 206.2yen as of 0001 GMT.
The benchmark contract rose more than 4 percent on Monday,tracking a 5 percent rise in Shanghai futures after inventoriesin Shanghai fell to their lowest since December. The Tokyomarket has fallen about 25 percent this year on concerns overeconomic growth in China.
* Rubber output in top producer Thailand is expected to riseas much as 5 percent in 2014, fuelled by maturing plantations,but an increase in demand may prop up prices, a senior industryofficial told Reuters on Monday.
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“I’d say production will increase by 3 to 5 percentmaximum,” said Bundit Kerdvongbundit, secretary-general of theThai Rubber Association.
* Erratic weather triggered by the El Nino weatherphenomenon could cut rubber output in Indonesia, thesecond-largest producer, by around 3 percent to 3 million tonnesthis year, a senior industry official said.
“Output may fall by 100,000 tonnes this year,” Asril SutanAmir, adviser to the Indonesian Rubber Association (GAPKINDO),said on Monday, ahead of a rubber summit in Singapore.
Inventories in warehouses monitored by the Shanghai FuturesExchange dipped 2.2 percent week-on-week to their lowest levelsince December at 163,097 tonnes (SNR-TOTAL-DW). However, stocksin Qingdao are estimated to have increased to around 362,000tonnes from around 360,000 tonnes last week and 290,000 tonnesin January.
TOCOM Rubber Futures Prices on Tuesday, May 20, 2014 (yen/kilogram)
| Month | Last Settlement Price | Open | High | Low | Close | Change | Volume |
| May 2014 | 197.5 | 195.2 | 195.5 | 194.0 | 194.0 | -3.5 | 28 |
| Jun 2014 | 198.7 | 198.7 | 198.7 | 196.0 | 196.0 | -2.7 | 208 |
| Jul 2014 | 201.4 | 202.4 | 202.5 | 197.5 | 198.3 | -3.1 | 199 |
| Aug 2014 | 203.0 | 203.5 | 204.0 | 199.3 | 200.4 | -2.6 | 698 |
| Sep 2014 | 205.6 | 206.0 | 206.9 | 201.5 | 202.6 | -3.1 | 810 |
| Oct 2014 | 206.5 | 207.1 | 207.9 | 202.0 | 203.5 | -3.1 | 6,963 |
| Total | 8,906 | ||||||
MARKET NEWS
* U.S. stocks rose on Monday, with a rally in high-growthnames among Internet and biotech shares giving the Nasdaq a gainof almost 1 percent.
* The dollar stood at 101.45 yen, holding close toMonday’s low of 101.11, its weakest since early February.
* U.S. oil prices rose to near one-month highs on Monday asa weak dollar prompted buying a day before the June contract’sexpiration, while Brent prices fell as slumping global equitiesoutweighed the impact of low Libyan output.
* Japan’s Nikkei share average was up 0.54 percent.
DATA EVENTS
* The following data is expected on Tuesday: (Time in GMT)
– 0600 Germany Producer prices April
– 0800 Italy Industrial orders March
– 1145 U.S.
Weekly ICSC chain store sales
(Reporting by Osamu Tsukimori; Editing by Ed Davies)
– Reuters
