TOKYO, July 22 (Reuters) – Key TOCOM rubber futures extended gains for a fourth session on Monday, helped by higher stock prices after Prime Minister Shinzo Abe’s ruling bloc and its allies won control of the upper house, boosting hopes for a sustained economic recovery.
FUNDAMENTALS
* The key Tokyo Commodity Exchange rubber contract for December delivery was trading up 1.5 percent at 255.4 yen as of 0100 GMT. The benchmark contract climbed as high as 258.9 yen in early trade. It gained 5.5 percent in the previous week to hit a six week high.
* Japanese Prime Minister Shinzo Abe’s ruling coalition scored a decisive victory in an election on Sunday — so big that there are suspicions he will lose interest in difficult economic reforms and pursue his nationalist agenda instead.
* Crude rubber inventories at Japanese ports fell to 11,284 tonnes as of July 10, down 301 tonnes over a 10-day period to the lowest level since Feb. 20, data from the Rubber Trade Association of Japan showed on Friday.
* Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 0.9 percent from last Friday, the exchange said on Friday.
* The Group of 20 nations pledged on Saturday to put growth before austerity, seeking to revive a global economy that “remains too weak” and adjusting stimulus policies with care so that recovery is not derailed by volatile financial markets.
* The U.S. Federal Reserve is “reviewing” a landmark 2003 decision that first allowed regulated banks to trade in physical commodity markets, it said on Friday, a move that may send new shockwaves through Wall Street.
TOCOM Rubber Futures Price on Monday, July 22, 2013 (yen/kilogram)
|
Month |
Last Settlement Price |
Open |
High |
Low |
Close |
Change |
Volume |
|
Jul 2013 |
245.5 |
243.0 |
252.0 |
243.0 |
249.0 |
+3.5 |
46 |
|
Aug 2013 |
248.1 |
250.0 |
254.1 |
248.6 |
251.0 |
+3.9 |
39 |
|
Sep 2013 |
248.7 |
248.7 |
256.1 |
247.2 |
252.0 |
+3.9 |
78 |
|
Oct 2013 |
249.8 |
251.5 |
256.6 |
250.5 |
254.2 |
+4.4 |
90 |
|
Nov 2013 |
250.5 |
251.3 |
257.8 |
250.8 |
255.0 |
+4.8 |
381 |
|
Dec 2013 |
251.6 |
251.3 |
258.9 |
250.0 |
256.4 |
+4.6 |
6,485 |
|
Total |
|
7,119 |
|||||
MARKET NEWS
* Japan’s Nikkei share average rebounded on Monday after Prime Minister Shinzo Abe’s ruling bloc and its coalition partner regained control of the upper house in an election.
* The yen inched lower in Asia on Monday after a big win at the polls by Japanese Prime Minister Shinzo Abe gave a green light for prolonged monetary stimulus, while fuelling hopes for reforms that could reflate the world’s third-largest economy.
* U.S. oil futures traded above the global crude-market benchmark, North Sea Brent, for the first time since 2010 on Friday as signs of strong demand from U.S. refiners boosted spread trading and bets that the era of the U.S. discount was ending.
* Commodity markets finished mostly steady to higher on Friday, with rebounding oil, gold and copper prices helping a key sector index notch a third straight week of gains.
DATA EVENTS
The following data is expected on Monday: (Time in GMT)
1230 U.S. Chicago Fed National Activity Index
1400 U.S. Existing home sales (Reporting by Yuka Obayashi; Editing by Richard Pullin)
Source: Reuters
