Monday, June 19, 2017

TOCOM falls; Indonesia not worried about slumping prices

TOKYO, June 20 (Reuters) - Benchmark TOCOM rubber futures extended declines to a near one-week low on Tuesday, after the world's No.2 producer Indonesia said it is not worried about a recent slump in prices as market fundamentals remain strong.

FUNDAMENTALS
* The Tokyo Commodity Exchange rubber contract for November delivery fell 1.6 yen to 193.6 yen ($1.73) per kg by 0027 GMT, after touching 191.9 yen, the lowest since June 14.

* Moenarji Soedargo, chairman of the Indonesian Rubber Association(Gapkindo), said supply/demand fundamentals are healthy and Gapkindo was not worried about prices. He was commenting after a weekend meeting of the main international rubber producer group, held in Indonesia.

* Soedargo declined to give details of discussions at the gathering, where producers had been expected to talk about rubber prices that touched seven-month lows early this month, partly due to a slowdown in imports by top consumer China.

* He said the market is currently being affected by technical factors that are putting pressure on prices.

MARKET NEWS
* Oil prices fell about 1 percent on Monday to a seven-month low as rising crude production in the United States, Libya and Nigeria undercut OPEC-led efforts to support the market with output curbs.

* The U.S. dollar was quoted around 111.72 yen, compared with around 110.95 yen on Monday afternoon.

* Japan's benchmark Nikkei stock average was up 1.2 percent.

* Zinc prices touched a two-week high on Monday as expectations of stronger demand from steelmakers rose and inventories of the metal hit nine-year lows.

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