Tokyo futures slip, track easing oil (Mar 28)

TOKYO, March 28 (Reuters) – Key TOCOM rubber futures fell on Wednesday as they tracked declining oil prices, though the market was supported by ongoing supply concerns.

FUNDAMENTALS

* The key Tokyo Commodity Exchange rubber contract for May delivery was changing hands 1.5 yen lower at 338.3 yen as of 0019 GMT.

Rubber supply in Thailand, the world’s biggest producer and exporter, is expected to fall by as much as half from normal production due to dry weather that cut latex supplies and forced farmers to stop tapping for a few weeks.

* Brent crude prices extended declines on Wednesday in tug-of-war trading as market players factored worries over disrupted supply against the likelihood of a release of U.S. strategic oil reserves to cap rising fuel costs.

MARKET NEWS

* The dollar’s strength also weighed on the rubber market. The euro fell to a session low against the greenback on Tuesday after Federal Reserve Chairman Ben Bernanke said the U.S. central bank had not taken any options off the table and needed to be prepared to respond however the economy evolves.

* Japan’s benchmark Nikkei average opened down 0.99 percent at 10,153.51 on Wednesday, while the broader Topix shed 1.08 percent to 863.02.

DATA EVENTS

* The following data is expected on Wednesday:

- 0530 France GDP detailed/Q4

- 0800 Euro Zone Money-Private loans/Feb

- 0830 UK GDP final/Q4

- 1100 US Mortgage market index/weekly

- 1230 US Durable goods/Feb

- 1430 US EIA weekly oil data

- NYMEX April 2012 natural gas futures expiry

(Reporting by Osamu Tsukimori; Editing by Joseph Radford)

Source: http://sg.finance.yahoo.com/news/rubber-tokyo-futures-slip-track-004253105.html