This entry was posted on Friday, September 4th, 2009 at 8:58 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, Sept 4 (Reuters) – Tokyo rubber futures rose more than 2 percent on Friday, up for the second straight day as gains in crude oil and some regional stock markets encouraged buying.
* Fundamentals are strong relative to those of other industrial commodities, one factor underscoring the Tokyo market’s recent resilience around 200 yen, traders said.
* The key Tokyo Commodity Exchange rubber contract for February delivery <0#JRU:> settled at 207.1 yen per kg, up 4.9 yen from the previous close. It earlier rose to 209.4 yen.
* The contract hit a one-week low of 196.7 yen on Wednesday before reversing declines on buying on dips partly by investment funds, traders said.
* “Fund managers were quick in withdrawing money from some other commodities, except rubber. They like the resilience in rubber,” said a manager at a Japanese trading firm.
“I think a cue for buying from strength in other markets could easily send it to a new year-to-date high,” the manager said, referring to the August high of 214.5 yen, the highest for any benchmark since October.
* Physical demand remains tight as major tyre makers have resumed buying on the back of a nascent recovery in the auto sector. But persistent rain in some producing countries is disrupting farmers from tapping.
* U.S. crude futures rose above $68 a barrel on Friday, eyeing a U.S. jobs report due later for some clarity on the economy of the world’s top energy user as it struggles to emerge from recession. [O/R] [ID:nN01485399]
* Regional stocks were mixed on Friday, with Japan’s Nikkei average <.N225> falling 0.3 percent in thin, see-saw trade with traders reluctant to buy ahead of key U.S. jobs data, while Chinese stocks rose 0.6 percent. [.T] [ID:nHKF082449]
* The dollar steadied above recent lows on Friday as investors hunkered down to await U.S. non-farm payrolls later in the day. The greenback was at 92.60 yen, off a seven-week low of 91.94 yen hit on trading platform EBS on Thursday. [USD/]
* A U.S. decision to impose emergency restrictions on tyre imports from China could ripple around the world prompting other countries to impose similar curbs, trade experts said on Thursday. [ID:nN03121700]
* President Barack Obama, in response to a case initiated by the United Steelworkers union, faces a decision whether to restrict the tyre imports by Sept. 17.
Source: Reuters