Benchmark TOCOM rubber futures rose for a sixth day in a row on Monday (Aug 25) as gains in Japanese equities and a weaker yen continued to support the soft commodity.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for January delivery rose 1.2 yen to 203.4 yen per kg by 0010 GMT, after finishing 0.8 yen higher on Friday (Aug 22).
Pressure is building within the Federal Reserve for officials to move as early as next month to more clearly acknowledge improvements in the U.S. economy and lay the groundwork for the central bank’s first interest rate hike in nearly a decade.
The Bank of Japan may have to pursue its aggressive monetary policy easing for “some time” to fully vanquish deflation, BOJ Governor Haruhiko Kuroda said on Saturday (Aug 23).
More Chinese manufacturers are falling behind on their payments as economic growth falters, causing accounts receivable to spike 1.1 trillion yuan in the first six months from the year-ago period, the government said on Friday (Aug 22).
Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 1.3 percent week-on-week, the exchange said on Friday (Aug 22).
A rebound in benchmark Tokyo rubber futures lifted prices of some tyre grades in Asia last week, but overall trading for physical cargoes was slow, with many dealers away for an annual industry gathering in Indonesia, dealers said on Friday (Aug 22).
MARKET NEWS
The U.S. dollar was quoted around 104.16 yen early on Monday (Aug 25), or just under a 7- month high hit earlier, as the greenback rose against a broad range of currencies.
Japan’s benchmark Nikkei stock average inched up 0.3 percent in Monday (Aug 25) trade, as the weaker yen supported exporters.
Copper hit its highest levels in a fortnight on Friday (Aug 22) and was on track for its biggest weekly rise in nearly a year on brightening U.S. economic hopes and the prospect of extended low interest rates.
U.S. crude oil futures fell on Friday (Aug 22) for a fifth straight week of declines while Brent remained under pressure from a stronger dollar and plentiful supplies despite an escalation of tensions between Russian and Ukraine.
(Reuters, August 25, 2014)
