This entry was posted on Wednesday, August 19th, 2009 at 5:01 pm and is filed under Rubber News. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.
TOKYO, Aug 19 (Reuters) – Tokyo rubber futures fell on Wednesday as a retreat in oil prices prompted investors to take profits.
* The key Tokyo Commodity Exchange rubber contract for January delivery <0#JRU:> fell 1 percent or 1.8 yen to 194.0 yen pr kg, retreating from a high of 203.5 yen marked earlier in the day.
* Rubber prices hit their intraday highs when crude oil rose more than $1 to $70.28 a barrel, and on renewed optimism about the economic outlook.
* After the benchmark contract rose to a 10-month high of 214 yen last week on improved technical charts and buying by chart-based funds, market volatility rose as funds began to liquidate their positions while players began taking profits.
* The market has drawn support as automakers resumed some production they had cut in the past year due to the economic slump. Traders have said Bridgestone Corp <5108.T>, Japan’s largest tyre maker, has recently been actively buying rubber.
* U.S. crude oil pared earlier gains, moving closer to $69 after topping $70 per barrel earlier on Wednesday. [O/R]
* The benchmark Nikkei average <.N225> ended down 0.8 percent on Wednesday, with investors wary after disappointing U.S. housing figures increased uncertainty about an economic recovery and as Chinese shares eased slightly. [.T]
* The yen rose versus other major currencies on Wednesday, as the fall in Chinese shares made investors cautious about returning to risky investments. [USD/]
* A stronger yen deflates the yen-based value of rubber futures prices and dampens market sentiment.
Source: Reuters