Tokyo rubber futures fall over 3 pct on Shanghai drop

Benchmark TOCOM rubber futures fell more than 3 percent in early Tuesday trade, tracking a sharp drop in Shanghai futures the previous day when Japanese markets were closed for a public holiday.

FUNDAMENTALS

The Tokyo Commodity Exchange rubber contract for April delivery had declined 5.6 yen to 154.1 yen per kg by 0034 GMT, after settling up 2.1 yen on Friday.

The front-month contract for November delivery expires later in the day.

The most-active rubber contract on the Shanghai futures exchange for January delivery SNRcv1 fell 2.9 percent in overnight trade.

China’s natural rubber imports in October rose 18.8 percent from a year earlier to 212,190 tonnes, while synthetic rubber imports gained 63.3 percent to 193,999 tonnes, official customs figures showed.

Global natural rubber output could drop for a second straight year in 2015 as prices near six-year lows have prompted Asian farmers to curtail tapping during their peak season.

MARKET NEWS

The U.S. dollar was quoted around 122.92 yen JPY= early on Tuesday, little changed from Friday afternoon.

Japan’s benchmark Nikkei stock average .N225 was little changed. MKTS/GLOB Base metals fell to multi-year lows on Monday on worries that a surge in the dollar could deter producers from making supply cuts in a market battling poor demand, especially in top user China.

MET/L Brent settled steady and U.S. crude slightly lower on Monday after prices were whipsawed by volatility as Saudi Arabia pledged to work toward oil price stability but traders worried about a global supply glut and signs of rising U.S.stockpiles.

O/R DATA/EVENTS (GMT)

The following data is expected on Tuesday: (Time in GMT)

– 0700 Germany Detailed GDP Q3

– 0745 France Business climate Nov

– 0900 Germany Ifo business climate Nov

– 1330 U.S. GDP second estimate Q3

– 1330 U.S. Trade data Oct

– 1400 U.S. S&P/Case-Shiller housing index Sep

– 1500 U.S. Consumer confidence Nov