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TOKYO, Aug 18 (Reuters) – Key Tokyo rubber futures fell on Tuesday to hit a one-week low as funds continued to liquidate their positions in a retracement of recent gains which took prices to a 10-month high last week.
* A Tokyo-based broker said there was little inflow of fresh funds.
* “We are seeing similar moves by funds in other markets such as oil … which fell below $70 last Friday,” he said.
* The key Tokyo Commodity Exchange rubber contract for January 2010 delivery <0#JRU:> fell 1.0 percent or 2.0 yen to 193.6 yen per kg at 0457 GMT, after moving between 192.6 yen and 196.4 yen.
* Tokyo rubber futures fell below 200 yen on Monday as oil prices extended losses to a two-week low on doubts about the global economic recovery, prompting funds to unwind their long positions.
* Key rubber futures hit a 10-month high of 214 yen last week.
* U.S. crude futures remained below $67 a barrel on Tuesday, after falling to their lowest in more than two weeks the day before amid worries about the global economic recovery. [O/R]
* The broker said that there were also more supplies of physical rubber, which was an additional factor pressuring prices of the industrial commodity.
* Japan’s crude rubber inventories totalled 7,829 tonnes as of July 31, down 5.4 percent from 10 days earlier, data from the Rubber Trade Association of Japan showed. [ID:nT388]
* The yen fell on Tuesday, snapping back from its highest levels this month against the dollar and the euro and retreating against commodity-linked currencies as Asian share markets steadied after losses. [USD/]
* Japan’s Nikkei stock index trimmed earlier gains to dip 0.5 percent on Tuesday, with market players taking cues from fluctuations in Shanghai shares.
Source: Reuters