Tuesday, 29 October 2013 01:10
Reuters: The new benchmark TOCOM rubber futures contract edged down on Monday, tracking a sharp fall in Shanghai rubber prices due to worries about tighter credit in China, the world’s biggest rubber consumer.
The benchmark rubber contract on the Tokyo Commodity Exchange for April delivery settled at 260 yen ($ 2.67), down 1.1 yen from the opening price of 261.1 yen per kg. The March contract settled 6.1 yen lower at 256.6 yen per kg on Friday.
“There was not any big fresh news. The market started with a firm tone, thanks to a weaker yen and higher Nikkei share prices in the morning, but reversed into a negative territory after the Shanghai rubber market dipped,” said Toshitaka Tazawa, an analyst at Fujitomi Co.
The benchmark contract rose to as high as 262.4 yen in early trade, but lost ground after Shanghai rubber prices tumbled on concerns about China’s attempts to cool consumer inflation and runaway property.
“For this week, investors will keep focusing on China’s economic data including Markit Manufacturing Purchasing Manager’s Indexes, due Friday, and the US economic indicators to see where the global economy is heading,” Tazawa said.
Other dealers said that Tokyo rubber futures may struggle to breach a key resistance level.
The most-active rubber contract on the Shanghai futures exchange for January delivery was down 495 yuan to 19,360 yuan ($3,200) per ton.
The front-month rubber contract on Singapore’s SICOM exchange for November delivery was last traded at 228.5 U.S. cents per kg, down 0.9 cents.