Benchmark TOCOM rubber futures fell early on Tuesday (Aug 26) as the dip in Japanese equities and a firmer yen outweighed gains in other industrial commodities like copper and crude oil to sap buying sentiment.
FUNDAMENTALS
The new benchmark Tokyo Commodity Exchange rubber contract for February delivery fell 5.2 yen from its opening price to 199.7 yen per kg by 0010 GMT.
The January contract finished 0.6 yen higher on Monday (Aug 25).
The Thai military government has approved a plan to sell its 200,000 tonne rubber stockpile, a senior government official said on Monday (Aug 25), aiming to cut storage costs and ending a stock overhang that has weighed on prices.
Indonesia’s new value added tax rate for commodities will hurt investments, give international traders a competitive edge and potentially hinder exports, trade groups said on Monday.
MARKET NEWS
The U.S. dollar was quoted around 104.09 yen early on Tuesday (Aug 26), down from a seven-month high hit on Monday.
Japan’s benchmark Nikkei stock average inched down 0.1 percent in Tuesday (Aug 26) trade, falling from a 3-1/2-week high hit the previous day.
Shanghai copper hit its highest in around seven weeks on Monday (Aug 25), underpinned by steady consumer demand and after London prices logged the biggest weekly rise in 11 months last week ahead of a long weekend.
Brent crude oil edged higher on Monday (Aug 25) while U.S. crude fell in light trading, as support from geopolitical tensions in Ukraine and Libya offset ample supplies and anticipated weak demand after a slew of disappointing economic data from the United States and Europe.
(Reuters, August 26, 2014)
