Tokyo futures fall to lowest in nearly 3 weeks on weaker Shanghai market
Benchmark TOCOM rubber futures dropped to their lowest in nearly three weeks on Tuesday after a slide in Shanghai contracts the previous day when Japanese markets were closed for a public holiday.
FUNDAMENTALS
* The Tokyo Commodity Exchange (TOCOM) rubber contract for February delivery was down 4.5 yen, or 2 percent, at 216.7 yen ($1.94) per kg at 0041 GMT. Earlier in the session, it touched its lowest since Aug. 31 at 216.2 yen.
* The most-active rubber contract on the Shanghai Futures Exchange, for January delivery, declined 95 yuan to 15,250 yuan ($2,320) per tonne in overnight trade.
* The International Tripartite Rubber Council (ITRC), representing the world's top natural rubber producers, did not decide to curb exports on Friday, but Thailand's agriculture minister said the ITRC is closely monitoring rubber price trends and the measure remains an option.
MARKET NEWS
* Global crude oil prices slipped slightly on Monday, but stayed close to multi-month highs as traders braced for a potential stockpile build, expected later this week.
* The U.S. dollar rose to a more than seven-week high against the yen on Monday, supported by a rise in U.S. Treasury yields, as traders waited on an impendingFederal Reserve meeting for clues on whether U.S. interest rates could rise again by year-end. It was quoted around 111.42 yen early on Tuesday.
* Japan's benchmark Nikkei stock average was up more than 1 percent after an index of world stocks hit a record-high the previous day.
* Lead prices hit two-week highs on Monday as worries increased about tighter supplies amid China's environmental crackdown, strong demand and falling inventories in Shanghai.
DATA/EVENTS (GMT)
* The following data is expected on Tuesday: (Time in GMT)
0800 Euro Zone Current account data Jul
0900 Germany ZEW economic sentiment index Sep
1230 U.S. Current account data Q2
1230 U.S. Import and export prices Aug
1230 U.S. Housing starts Aug ($1 = 6.5725 Chinese yuan renminbi) ($1 = 111.4200 yen)
- Tireworld Insight: Domestic tire makers eye overseas expansion
- Tireworld Insight: Price disparity severe between China's rubber exports and imports
- Tireworld Insight: China tire exports dependent on US market performance
- Tireworld Insight: SHFE rubber expected to move in tight range in short-term
- Tireworld Insight: Rubber futures to test near-term resistance at 15,000 yuan/tonne
- Tireworld Insight: China’s tire industry on track of rapid growth
