Tokyo Rubber Futures Ease but Firmer Oil and Commodities Support

Key Tokyo rubber futures eased on Friday (April 15), but losses were limited due to firmer oil and other commodities markets and a weaker yen.
The key Tokyo Commodity Exchange rubber contract for September delivery fell as low as 436.4 yen per kg as of 0028 GMT, down 5.7 yen or 1.3 percent from Thursday's settlement of 442.1 yen. The contract pared losses as a weaker yen and the rise in oil prices as well as strength in precious metals markets supported sentiment.
The most active Shanghai rubber contract for September delivery fell 420 yuan to close at 35,670 yuan ($5,459.650) per tonne. Volume picked up to 756,046 lots, up from Wednesday's (April Apr.13) 696,270.
Financial markets in Thailand, the world's top rubber producer, are closed for the Songkran festival holidays from Wednesday to Friday, keeping overall rubber market trade in a narrow range.
U.S. crude futures extended gains for a third day on Friday (Apr.15), supported by the dollar hovering at 16-month lows and no clear end to fighting in Libya that has cut supplies from the OPEC nation.
The dollar wallowed at 16-month lows against a basket of major currencies early in Asia on Friday but looked unlikely to extend losses significantly ahead of Chinese economic data.
Japanese Economics Minister Kaoru Yosano said on Friday (Apr.15) it is Japan's responsibility not to destroy global supply chains and he pledged to minimise the economic risks arising from last month's deadly earthquake and tsunami. The auto industry faces months of supply chain disruptions triggered by an earthquake and tsunami in Japan, Germany's Bosch said.
The recent surge in oil prices is no prelude to broader price increases that would force the Federal Reserve to raise interest rates, top Fed officials said on Thursday in what appears to be the predominant view at the central bank.
Prices paid by U.S. factories picked up pace in March as the disruption caused by Japan's earthquake began to be felt in the auto industry and fuel prices rose strongly.
The benchmark Nikkei stock average fell 0.5 percent on Friday. Stocks that outperform in a weak economy helped the Dow and S&P 500 eke out gains on Thursday as concerns about faltering growth and inflation prompted investors to seek out less volatile names
(Reuters, Tokyo, April 15, 2011)