Osaka Mercantile Exchange Monthly Rubber Report

RSS3 Futures : After opening slightly lower on June 1 (spot month: \72.70 distant month: \83.10), the prices fluctuated within a narrow range in the absence encouraging factors, and the issue of rubber import quota by China still remained uncertain despite the shortage of domestic supply in China. On June 10, the prices remained flat (spot month: \72.00 distant month: \82.10). On June 14, after surging to the 117 yen level against the dollar for the first time since April 20, the yen slumped in response to the intervention in the currency market by the Bank of Japan. Despite this movement in currency market, the market remained indifferent, and the prices were mostly unchanged. Thai government intervention started on June 16, market players, however, expected no significant rise in the prices due to the increase in rubber roduction. On June 18, the prices at OME went lower (spot month: \69.90 distant month: \80.30) on long-liquidation in response to the rise in warehouse stocks in Japan to 44,000 tons. On June 24, June contract expired lower at \67.80 as there were few physical deliveries taken, and the price recorded its life time low. Later, the prices declined further on fresh selling in a large lot by funds who supposed bearish sentiment would continue due to ample supplies in both Japan and overseas. On June 28, distant month sank to the renewed low at \77.30. Later, the market attracted short-covering as players became cautious of excessive selling after the fall in the prices over the past few days. On June 31, distant month resisted to decline at \79.30. Rubber Index Futures: On June 1, the prices were mostly unchanged at the open (spot month: 69.75, distant month: 75.65) with players staying on the sidelines in the absence of encouraging impetus. On June 4, distant month declined to 72.20 due to the easier tone in the producing countries. Later, amid uncertainties over the direction in the market, the prices fluctuated within a narrow range as both buyers and sellers failed to actively build up their positions. On June 11, the new December contract month opened at 74.25. This was higher than November contract which opened at 73.35. Later, the prices were locked in the narrow band following the small fluctuation in RSS3 futures market due to the continued sluggish demand-supply situation in both Japan and overseas. The start of a new round of Thai government intervention on June 16 gave no impact on the market, traders said. On June 18, distant month fell to 73.20 on selling in a small lot prompted by the firmer yen. From June 21 to 25, the market continued the lackluster trade reflecting the small price movements in RSS3 futures market. Later, the prices went lower on the distressed selling due to some bearish factors, such as the spot $B!G (Bs lower expiry in RSS3 futures market, the fall in the prices in the producing countries and mounting stocks in Japan. On June 28, distant month recorded its life time low at 72.05. On June 30, distant month resisted to decline to 73.30 on short-covering as players became cautious of excessive selling after the ecline in the prices over the past few days. Throughout the month, amid lack of fresh incentives, public investors have refrained from acting due to the dull price movements, and both the volume of trading and the open interest decreased. Volume of trading for the month decreased sharply from the previous month by about 30,000 lots to 88,658 lots.