TOKYO rubber futures slipped 1.7 percent early on Tuesday (June 7), weighed down by losses in oil and a Wall Street slump, while investors nervously watched for signs of a further weakening in Chinese demand and rising supply from producing countries.
Fundamentals
The key Tokyo Commodity Exchange rubber contract for November delivery was down 6.8 yen at 385.4 yen as of 0030 GMT.
Chinese markets were closed on Monday (June 6) for a public holiday and resumed on June 7.Farmers in Thailand, the biggest rubber producer and exporter, have resumed tapping but strong growth in car demand in China has been slowing after Beijing’s tightening measures to rein in rapid expansion and rising inflation.
The dollar crept up to 80.12 against the yen, after a brief dip below 80.00 for the first time since May 5.
Traders said there was options-related buying as well as support from Japanese importers at around 80.00.
Oil fell on Monday (June 6) by the biggest amount in two weeks on fears of an OPEC output hike and concerns about the economic outlook.
Market news
General Motors Co expects to sell 1.5 million vehicles a year in South America by 2015, up from 1.03 million last year, the head of the largest U.S. automaker’s operations in the region said.
The Nikkei average edged lower on Tuesday (June 7), hit by losses on Wall Street due to fears of a slowing U.S. economy, but the benchmark’s support level of 9,317 is expected to hold.
The S&P 500 extended its slide to a fourth day on Monday (June 6), hitting its lowest level since March 18, as a spate of recent weak U.S. data lent support to a bearish outlook for the economy.
Source: Rubber Market News