TOKYO, Jan 30 (Reuters) – Key TOCOM rubber futures rose more than 1 percent on Wednesday, erasing losses from a day earlier and supported by expectations that the trend for a weaker weak yen is likely to continue.
FUNDAMENTALS
* The key Tokyo Commodity Exchange rubber contract for July delivery was changing hands 3.5 yen higher at 316.1 yen as of 0016 GMT after settling down 1.1 yen a day earlier.
The weaker yen helped lift TOCOM prices to a nine-month high of 321 yen on Jan. 11, before profit-taking set in. The yen’s movement is a major factor behind investor sentiment for rubber amid a lack of other market-moving information, dealers say.
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* The dollar held near a 2-1/2-year high hit a day earlier. Analysts said yen weakness will resume as investors look to buy the dollar back at lower levels.
A weaker yen against the dollar in theory inflates yen-denominated TOCOM prices as rubber is traded in dollars in producing countries.
* Dealers were also looking ahead to the Federal Reserve’s policy meeting and the first estimate of U.S. fourth-quarter GDP due later in the day.
* Chinese consumers struck deals to buy a few cargoes of rubber for nearby shipment but high inventory in the world’s top consumer could curb buying interest ahead of the Lunar New Year break, dealers said on Tuesday.
TOCOM Rubber Futures Prices on Jan 30, 2013 (yen / kilogram)
|
Month |
Last Settlement Price |
Open |
High |
Low |
Current |
Change |
Volume |
|
Feb 2013 |
290.4 |
291.3 |
292.2 |
290.4 |
292.2 |
+1.8 |
17 |
|
Mar 2013 |
293.6 |
291.5 |
296.0 |
291.5 |
294.8 |
+1.2 |
144 |
|
Apr 2013 |
298.9 |
299.4 |
303.0 |
299.4 |
302.2 |
+3.3 |
257 |
|
May 2013 |
304.8 |
303.7 |
308.1 |
303.7 |
307.3 |
+2.5 |
758 |
|
Jun 2013 |
309.4 |
308.5 |
313.0 |
308.4 |
312.3 |
+2.9 |
1,843 |
|
Jul 2013 |
312.6 |
312.4 |
316.5 |
311.8 |
315.9 |
+3.3 |
3,693 |
|
Total |
|
6,712 |
|||||
MARKET NEWS
* U.S. stocks advanced on Tuesday, led by defensive sectors, in a sign the cash piles recently moving into the market are being put to use by cautious investors to pick up more gains.
* Euro bulls were battling to break 14-month peaks versus the dollar on Wednesday and trip option barriers at $1.3500
* U.S. crude oil rose more than 1 percent on Tuesday, exceeding gains in Brent crude, after strong U.S. housing market data bolstered confidence that economic growth and fuel demand were accelerating.
* Japan’s Nikkei share average edged up on Wednesday as investor sentiment was supported by the trend for a weaker yen, while investors awaited more trading cues from local earnings.
DATA EVENTS
* The following data is expected on Monday: (Time in GMT)
– 1000 Euro Zone Business climate Jan
– 1200 U.S. Mortgage market index
– 1315 U.S. ADP National Employment Jan
– 1330 U.S. GDP Advance Q4
– 1530 U.S. EIA weekly petroleum stocks and output data
– 1915 U.S. Fed policy decision (Reporting by Osamu Tsukimori; Editing by Richard Pullin)
Source: Reuters
