Tokyo Futures Rebound As Other Commodities Steady

Key Tokyo rubber futures rebounded on Wednesday (Apr 20), snapping a six-day drop, as sentiment improved with other commodities markets stabilising from a sharp drop the day before on wariness over the recent rapid pace of gains.
FUNDAMENTALS
The key Tokyo Commodity Exchange rubber contract for September delivery rose 5.8 yen or 1.4 percent to 415.5 yen per kg as of 0018 GMT.
It fell 5 percent to a three-week low on Tuesday (Apr 19) after Standard & Poor's warning that it may cut the United States' AAA credit rating triggered heavy stop-loss selling while weaker oil added to the downward pressure.
The most-active Shanghai rubber contract for September delivery fell 1,090 yuan to settle at 33,870 yuan ($5,187.868) per tonne on Tuesday (Apr 19).
U.S. oil prices were steady in early trade on Wednesday after rising the day before in volatile trade as a weaker dollar and stronger equities lifted prices and offset concerns over sovereign debt and uncertain demand prospects.
The euro and commodity currencies like the Australian dollar rose early in Asia on Wednesday, having staged a rebound as investors bought them again after a mild shake-out of stretched long positions at the start of the week.
(Reuters, April 20, 2011)