Osaka Mercantle Exchange RSS3 Futures/Rubber Index Futures weekly Report

This week, in both RSS3 futures and index futures markets, speculative interests were cooled off due to a glut of rubber stocks in both Japan and the producing countries and to the uncertainty of the direction in Japanese economy. RSS3 Futures: Distant month: opening 70.0 yen, a high 71.4 yen (Jul.22), low 69.0 yen (Jul.21), closing 70.8 yen. Rubber Index Futures: Distant month: opening 66.25, a high 68.40 (Jul.22), a low 65.8 (Jul.21), closing 67.95 points. Amid ample supplies, the RSS3 futures market went lower on active liquidation by longs who supposed few physical deliveries would be taken as there was the pressure of 880 lots that had undergone quality inspection. On July 21, spot and distant months sank to 58.6 yen and 69.0 yen respectively, both were the lowest records since the opening of RSS3 futures. Later, the prices turned slightly higher on some encouraging news, such as reinforcement of the Thai government's intervention, China's State Planning and Development Commission opening quotas for the import of 190,000 tonnes of rubber and Chinese traders inquiring for large quantities. On July 23, however, the RSS3 futures slipped to 59.7 yen in spot month and to 70.8 yen in distant month on selling at a rally due to the yen's surge to the 116 yen level. This week's total volume in RSS3 futures market was 17,935 lots, and it was 13,617 lots in index futures market.