Key Tokyo rubber futures edged lower on Thursday (April 14) as recent steep price rises made participants cautious, with many investors sidelined due to festival holidays in top rubber producer Thailand. The key Tokyo Commodity Exchange rubber contract for September delivery was down 0.8 percent, or 3.4 yen, at 447.0 yen per kg as of 0043 GMT. Sixth-month Tokyo rubber is expected to revisit the February high at 535.7 yen per kg over the next four weeks as its long-term uptrend has resumed.
The most active Shanghai rubber contract for September delivery inched up 100 yuan to close at 36,555 yuan ($5,589) per tonne on Wednesday (Apr.13). Volume rose to 696,270 lots from Tuesday's 495,298 lots.
U.S. crude oil prices rose on Wednesday (Apr.13), snapping two days of losses, getting a lift from data showing U.S. gasoline stockpiles plunged last week and from lingering worries about the Libyan conflict.
The dollar held near the previous day's 16-month low against a basket of currencies on Thursday as mixed U.S. data did nothing to change the view that the Federal Reserve would stick to its super-easy monetary policy.
A battle of nerves is shaping up between rubber growers and speculators as uncertain demand due to the Japan earthquake and Middle East unrest offsets tight supply in a volatile market, but top producers stand ready to intervene if prices plunge. Rubber prices have been volatile in the past two months, tumbling about a third from a mid-February record high, before recouping the losses and easing again this week on fears that costly commodities could slow economic growth and hit demand.
Financial markets in top rubber producer Thailand are closed for the Songkran festival holidays from Wednesday to Friday (Apr.13 to 15).
Volkswagen said a decision on a possible stake in Isuzu Motors was currently not on the agenda after a report it was considering buying all or part of the Japanese truck maker. Managing the supply of parts from Japan following last month's earthquake is a complex and still-evolving process, Ford Motor Co Chief Executive Alan Mulally said on Wednesday.
So far, the Japan crisis has had no material impact on Ford's earnings, Mulally told reporters in Detroit.
Japan's Nikkei average inched lower on Thursday (Apr.14) and is expected to trade in a tight range in low volume for the rest of the day with tech shares poised to outperform after their U.S. peers posted strong gains overnight
(Reuters, Tokyo, April 14, 2011)
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