TOKYO, Jan 25 (Reuters) – The January rubber futures contract on the Tokyo Commodity Exchange expired on Monday at 276.5 yen per kg, down 2.9 yen on the day, with 204 lots or 1,020 tonnes of deliveries, the largest delivery volume since July 2009.
The July 2009 contract expired with 460 lots of deliveries, which was the highest delivery amount since January 2007 when 516 lots were delivered.
Last month, the December contract expired at 262.90 yen, with 190 lots of deliveries.
In May, TOCOM introduced a new trading system and stopped providing the names of firms involved in deliveries. It now only discloses the total lots delivered and the price at which deliveries were made.

Source: Reuters

[Dow Jones] Tocom RSS3 rubber futures tumble 5.8%, erasing all gains made in last two weeks on U.S. proposal to limit size, scope of banks, speculation that China may further tighten liquidity. U.S. proposal rattles rubber futures as many banks with global network have major commodities trading operations. It isn”t just rubber; many commodities have taken a beating, says broker in Tokyo. “Institutional funds are worried that their money pipeline may be affected, even though it won”t dry up, and they”ve taken a conscious decision to book profits before starting afresh Monday,” says Singapore-based analyst. Mild recovery had already taken place before closing, prices may test Y290/kg in night session. Benchmark Tocom June contract settles Y13.3 lower at Y289.3/kg after hitting intraday low of Y285.1, level not seen since Jan. 6. (SAM)

Source: Dow Jones

Jan. 22 (Bloomberg) — Rubber slumped by the most in four months on concern that investor demand will weaken after a U.S. proposal to restrict risk-trading spurred a rally in the yen and a sell-off in global stocks.

Futures in Tokyo tumbled as much as 5.8 percent, the most in intraday trading since Sept. 14. President Barack Obama called for limits on the trading activities of banks as a way to prevent another financial crisis. The yen rose to a one-month high against the dollar and Japan’s Nikkei 225 Stock Average lost 2.6 percent, erasing most of this year’s advance.

“Investors were cutting holdings of risk assets because of the proposed restrictions on U.S. financial institutions,” Kazuhiko Saito, an analyst at Tokyo-based broker Fujitomi Co., said today by phone. “Rubber was dragged down by losses in the equities and metals markets.”

Rubber for June delivery lost as much as 17.5 yen to 285.1 yen per kilogram ($3,158 a metric ton) before settling at 289.3 yen on the Tokyo Commodity Exchange. It fell 3.0 percent this week, the worst performance since the week ended Dec. 11. Prices have still gained 4.8 percent this month.

The yen climbed on concerns a U.S. proposal to limit risk- trading at banks will discourage demand for higher-yielding assets. A stronger Japanese currency cuts the appeal of yen- based futures as rubber trades globally in dollars.

Trading Curbs

Obama’s proposals, to be added to an overhaul of laws being considered by Congress, would prohibit banks from running proprietary trading operations solely for their own profit and sponsoring hedge funds and private equity funds.

“Trading restrictions at banks will enhance risk- aversion,” said Soichiro Mori, a Tokyo-based strategist at FXOnline Japan Co.

Rubber futures also declined amid speculation that China may change its fiscal and monetary policy after the nation’s economic growth accelerated, Saito at Fujitomi said.

China’s 10.7 percent growth in the fourth quarter ignited concern that the nations responsible for leading the world out of a recession will raise borrowing costs to keep their economies from overheating. China is the world’s largest user of natural rubber as the nation surpassed the U.S. to become the biggest auto market last year.

China’s statistics bureau omitted a reference to maintaining a “moderately loose monetary policy” and a “proactive fiscal policy” in its outlook section when it announced the fourth-quarter growth yesterday. The statement mirrored the same omission by Premier Wen Jiabao in a Jan. 19 report. Rubber for May delivery on the Shanghai Futures Exchange lost 3.2 percent to 24,550 yuan ($3,596) a ton at 2:49 p.m. local time.

Source: Bloomberg

[Dow Jones] Tocom RSS3 rubber futures reverse earlier losses, settle higher, aided by weaker yen, gains in China equities, commodities in afternoon. “Rubber finally took the cues from Shanghai,” says trader in Singapore. Adds China”s macroeconomic data, although strong, fuels tightening concerns, explaining why most Asia markets seemed to be weak early in wake of U.S. equities, commodities losses overnight. Benchmark June contract settles Y1.8 higher at Y302.7/kg, well off intraday low of Y294.2/kg. (HWS)

Source: Dow Jones

Jan. 21 (Bloomberg) — Rubber fell for the first time in three days on speculation that credit controls in China, the world’s biggest consumer for the commodity used to make tires, may slow economic growth.

Futures dropped as much as 2.2 percent after nearing a 16- month high yesterday. China will limit lending growth in the nation, Liu Mingkang, a banking regulator, said yesterday. The Asian nation is under pressure to keep its economy from overheating after government officials in November cited the risk of inflated asset prices.

“China says everything about commodities, including rubber as well as metals,” said Hiroyuki Kikukawa, general manager of research at Tokyo-based IDO Securities Co. “A firmer dollar and lower oil prices also put pressure on rubber futures.”

Rubber for June delivery lost as much as 6.6 yen to 294.2 yen per kilogram ($3,223 a metric ton) on the Tokyo Commodity Exchange and traded at 296.7 yen at 10:40 a.m. local time.

China, the world’s third-largest economy, replaced the U.S. as the world’s biggest auto market last year as government stimulus measures fuelled a 46 percent jump in vehicle sales. It will probably report fourth-quarter growth of 10.5 percent today, according to a survey of economists by Bloomberg News.

That would be the most in 21 months and follows an 8.9 percent expansion in the third quarter. The acceleration reflects an unprecedented $586 billion fiscal program and a credit-fueled investment boom that shielded China from the world recession.

Rubber futures touched 306.0 yen on Jan. 15, the highest level since Sept. 9, 2008. Prices rose the past two days after Thailand, Indonesia and Malaysia, the largest rubber producers, said they would monitor demand and supply and take steps to counter any decline in prices. The three countries account for about 70 percent of global output.

Crude oil for February delivery was little changed at $77.58 a barrel after losing 1.8 percent yesterday. A drop in oil prices often erodes the competitiveness of natural rubber against rival synthetic products made from petroleum.

Source: Bloomberg