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TOKYO, July 6 (Reuters) – Key Tokyo rubber futures fell on Monday, hurt by a drop in oil prices and the yen’s rise, reinforcing traders’ views that the market is in a technical downtrend.
* The key Tokyo Commodity Exchange rubber contract for December delivery inched down 0.4 percent to 157.0 yen per kg. It earlier fell to a low of 155.0, down nearly 2 percent from Friday’s settlement of 157.7 yen, before paring some losses.
* On Friday, the lead contract fell as low as 154.6 yen, the lowest for any benchmark since June 25.
* Oil prices dropped to a five-week low of below $65 a barrel on Monday, after posting three weeks of losses, as doubts over the prospects of an early global economic recovery encouraged investors to take profits.
* But oil’s decline could be curbed by news of fresh attacks on oil installations in Nigeria, Africa’s top oil producer.
* NYMEX floor trading was closed on Friday for the U.S. Independence Day holiday.
* The dollar steadied against the euro on Monday after easing versus the single currency on Friday. The dollar gained on Thursday following weak U.S. jobs data which dampened hopes that the global economy is poised to recover.
* The dollar fell 0.7 percent against the yen. A stronger yen weighs on TOCOM prices as it deflates yen-based futures.
* Markets in Thailand are closed on Monday and Tuesday for public holidays.
* An Indonesian trader said Japan’s largest tyre maker Bridgestone bought Indonesia’s SIR20 at 67.25 U.S. cents per pound ($1.48 a kg) for September delivery on Friday. The trader also said Bridgestone bought RSS3 at $1.625 per kg for August shipment and $1.605 per kg for September. The trader had no details on volumes.
* Traders said Indonesian grade continued to attract buying interest from customers, including some in China, due to their relative cheapness compared to the Malaysian or Thai grades.
* Investors largely stayed on the sidelines due to caution over the prospects for a recovery in global demand.
* Rubber inventories in warehouses monitored by the Shanghai Futures Exchange edged up 1 percent in the week that ended on Thursday, the exchange said on Friday.
Source: Reuters