TOCOM Gold

Prices of TOCOM gold futures took it on the chin last week as global gold prices fell significantly early last week. Gold futures and gold exchange traded funds (ETF) were strongly sold by investors and traders after numerous analysts downgraded their price targets for gold over the past few weeks, minutes from last month’s U.S. Federal Reserve policy meeting revealed comments that monetary policy could tighten later this year and there were concerns in the market that European central banks could sell gold in order to raise funds to cover deficits after Cypress looks to do just that. Last Monday the U.S. dollar spot price of gold fell by the largest amount on record in dollar terms. In Tokyo last Monday, TOCOM’s most actively traded forward contract fell by over 8% and finished the week down 9.8%. The forward contract rallied on Friday due to a weaker yen and a higher U.S. dollar spot price and closed last Friday’s day trading session at 4510 yen per gram after falling as low as 4132 yen last Tuesday. The U.S. dollar spot price fell to a two year low last week of $1321.25 per ounce before recovering to around the $1400 mark late in the week. It was reported that holdings by the world’s largest gold ETF, the SPDR Gold Trust, dropped to 3-year lows. After the big drop in global gold prices there were reports of strong physical buying by retail customers in many countries including China where the China Gold Association reported that retail gold sales tripled in China on April 15^th and 16^th. There were also reports of shortages of gold bars in Hong Kong and Singapore and premiums paid by customers over the spot price in Singapore hit 18-month highs. There was also increased demand for gold bars and coins at Tokyo gold dealers as one retailer saw sales double last Tuesday and in the U.S. there were also reports of strong sales of American Eagle gold coins. A weaker yen helped to stop the slide on Wednesday as the TOCOM forward contract squeaked out a small gain for the day but fell again on Thursday before the rally on Friday. Trading volume of TOCOM gold futures was very high last week especially on Monday and Tuesday as volume reached over 180,000 on both days. Open interest was little changed for the week and stood at 110,832 open contracts as of last Friday.

TOCOM Gold Daily Chart – Forward Contract (as of April 22)

TOCOM Gold Forward Contract Weekly Trading Data

TOCOM Platinum

TOCOM platinum futures got caught up in the gold meltdown but held up a little better. The most actively traded forward contract dropped by 6.5% or 322 yen last week. The forward contract closed Friday’s day trading session at 4609 yen per gram and closed higher than the TOCOM gold contract. The forward contract sunk to as low as 4310 yen during last Tuesday’s trading before recovering some of the losses and closed Tuesday’s day trading session at 4553 yen. Platinum futures fell last week due to the heavy drop in gold prices, weaker than expected economic data released by China and very weak automobile sales data released by the European Automobile Manufacturers’ Association (ACEA). China released data last Monday showing less than forecast growth in first quarter gross domestic product (GDP) and this contributed to the drop in commodity prices in Asia last Monday in addition to following up on the sell-off in Europe and the U.S. the previous Friday. Last Wednesday in Europe the ACEA reported that car sales in Europe dropped by 10% in March and 9.7% in the first quarter year-on-year and this does not bode well for platinum demand as the metal is used extensively in diesel engine exhaust systems and diesel engines remain very popular in Europe. If these trends continue for the rest of the year, automobile sales in Europe could drop to 20-year lows. In platinum industry news, Anglo American Platinum (Amplats) announced last week that output fell by 2% in the first quarter due to labor strikes and they expect the global platinum market to be roughly balanced in 2013 between supply and demand. Amplats is the world’s largest producer of platinum. TOCOM trading volume for platinum futures was very high early in the week due to the big drop in prices and open interest dropped by over 20% and stood at 48,234 as of last Friday.

TOCOM Platinum Daily Chart – Forward Contract (as of April 22)

TOCOM Platinum Forward Contract Weekly Trading Data

TOCOM Rubber

Prices of TOCOM rubber futures were not spared either as the benchmark forward contract fell by 17.2 yen or over 6% last Monday which was the largest drop in 17 months. A glut of rubber in the market and the above mentioned disappointing GDP data released by China last Monday led traders to sell rubber last week as prices declined from Monday to Thursday before recovering some of the losses last Friday due to a weaker yen and a recovery in other global commodity prices including oil. There was also a carry-over from the previous Friday’s news that Thailand, Malaysia and Indonesia, the top rubber producers in the world, may halt previously self-imposed export limits which could increase supply in the market. On Thursday, the forward contract hit a 5-month low of 242.6 yen per kilogram before closing Friday’s day trading session at 253.3 yen per kilo, which was an 8.3% or 22.9 yen drop for the week. As with platinum, the rubber market is also being hampered by demand worries due to the continuing drop in automobile sales in Europe. Stock levels of natural rubber at warehouses in both China and Japan also remain at very high levels and this continues to add to the bearish mood in the market. Trading volume was moderate last week despite the big fall in prices and open interest fell by around 2,500 contracts and stood just over 20,000 as of last Friday.

TOCOM Rubber Daily Chart – Forward Contract (as of April 22)

TOCOM Rubber Forward Contract Weekly Trading Data

Exchange and Industry News

No news this week.

Disclaimer:

This market review and news report contains information and data from sources believed to be reliable and accurate as of the date of publication but has not been independently verified. This report is for informational purposes only and no employee, director or connected person to Dot Commodity, Inc. takes any responsibility for the information or correctness of the content contained in the report. Dot Commodity, Inc. is strictly an online commodity futures broker and does not give any trading recommendations or financial advice to any of its clients, perspective clients or readers of this report. No part of this market review & news report is to be construed as an offer or solicitation to buy or sell any commodity futures or financial contract or product of any kind.

TOCOM Gold

Prices of TOCOM gold futures climbed back over the 5,000 yen mark last week and came within 3 yen from the all-time high of 5,081 which was reached on February 7^th this year. Commodity and equity prices made strong gains last Monday as the yen weakened against all major currencies due to aggressive bond buying by the Bank of Japan (BOJ). The most actively traded forward contract gained 217 yen last Monday and finished the week up 202 yen or 4.2%. The forward contract closed last Friday’s day trading session at an even 5,000 yen per gram after hitting 5,078 on Thursday. The U.S. dollar based gold spot price has been weakening in recent weeks due to a stronger U.S. dollar and large outflows of capital by institutional investors as they seek higher yielding investments in equity and real estate markets and the chance for capital gains as equity markets continue to rally. Holdings of the largest gold backed exchange traded fund (ETF) reported holdings at 2 year lows as of last Friday. There was also worries in the market that Cyprus would have to sell gold to raise funds to help pay for the bailout of its banking system and some analysts worried that other central banks in Europe would also be forced to sell gold to raise funds. Adding to the pressure on global gold prices was the lowering of gold price forecasts for this year by UBS, Deutsche Bank and Goldman Sachs with the latter recommending clients to go short COMEX gold contracts and reportedly lowered their price forecast for 2013 from $1,610 to $1,545 and from $1,490 to $1,350 for 2014. Late in the week the USD spot price started to break through technical support levels and slid below the $1,500 mark on Friday and this marked an entry into bear market territory as the U.S. spot price has now fallen more than 20% from its all-time high of $1,920 which was reached in September 2011. In Tokyo, after gold prices rose back over the 5,000 yen per gram mark last week there were reports of heavy traffic in gold and jewelry shops with individuals waiting in line to sell gold and gold jewelry. A weaker yen should continue to support commodity prices in Japan but with U.S. dollar spot prices coming under pressure many analysts and traders expect TOCOM gold prices to be under pressure next week. Trading volume for TOCOM gold futures was moderate except for last Monday as volume was over 100,000 due to the large gains and open interest fell by a whopping 20,000 contracts last week as some long position holders sold to lock in profits as prices failed to reach a new all-time high. As of last Friday open interest stood at 110,674.

TOCOM Gold Daily Chart – Forward Contract (as of April 15)

TOCOM Gold Forward Contract Weekly Trading Data

TOCOM Platinum

TOCOM platinum futures prices strongly rallied last Monday as did most commodity and equity prices in Japan due to the sharply weaker yen against most major currencies with the yen getting close to the 100 yen mark against the U.S. dollar. The most actively traded forward contract gained 4% or 189 yen for the week and closed Friday’s day trading session at 4931 yen per gram after hitting 5,000 yen on Wednesday. Weak vehicle sales in Europe continue to keep platinum demand soft as diesel engines are popular in Europe and diesel engines mainly use platinum in their exhaust systems where gasoline engines use palladium more so than platinum. Last week China reported that vehicle sales increased by 13.2% for the first three months of this year and due to the recent air pollution problems some analysts expect stricter exhaust system standards to be implemented which would raise demand for both platinum and palladium there. South Africa reported that its output of platinum group metals (PGM) surged by 66% in February year-on-year mainly due to labor problems quieting down compared to last year at this time. Like gold, platinum prices plunged late Friday night in Japan during European and U.S. market times as the U.S. dollar platinum spot price hit an 8 month low and TOCOM platinum prices followed and sold off during the night trading session in Tokyo and this weakness is expected to carry over to next Monday’s trading. Traders will of course be carefully watching currency markets to see if the yen will further weaken or rebound some after nearing 100 yen to the dollar last week but not breaking through. Trading volume for TOCOM platinum futures was moderate last week with only Monday’s trading volume reaching 20,000. Open interest was little changed last week and stood at 63,380 open contracts as of last Friday.

TOCOM Platinum Daily Chart – Forward Contract (as of April 15)

TOCOM Platinum Forward Contract Weekly Trading Data

TOCOM Rubber

TOCOM rubber futures price gains last week made increases by gold and platinum futures seem pedestrian. The benchmark forward contract surged by 8.8% or 22.4 yen last week and closed Friday’s day trading session at 276.2 yen per kilogram. Market fundamentals remain fairly bleak as stock levels remain at very high levels in China, Japan and SE Asian rubber producing countries. The main market mover last week was the weaker yen which pushed the price of the forward contract higher by a whopping 17.1 yen last Monday and then a further 4.6 yen on Tuesday. Both equity and commodity prices rallied in Japan early last week on the weaker yen and there was a lot of short-covering in the rubber market as market sentiment had been very bearish over the past few weeks. The main reason for the bearishness has been the continuation of rubber stock levels in Asia with levels reportedly reaching a six-year high at ports in Japan and stock levels at TOCOM designated warehouses increased by another 1,163 tons from March 20^th to March 31^st and stood at 13,648 tons as of the 31^st. The 13.2% increase of vehicle sales in China for the first quarter of this year did not do much to move the market as depressed sales in Europe and the high level of rubber stocks has prevented much fresh buying from coming in at SE Asian physical rubber markets according to reports. Adding to market worries is that Thailand will shortly be exiting the dry season and latex output of rubber trees should increase which could increase the supply glut in the market. It was also reported last week that Indonesia, the world’s second largest rubber producer, would like Thailand and Malaysia to join them in halting the agreement that they agreed upon last year to reduce exports in an effort to prop up market prices. Indonesia reportedly does not see efforts to cut exports as helping to support market prices. Trading volume for TOCOM rubber futures was moderately strong early in the week before tapering off in the latter half. Open interest was little changed last week.

TOCOM Rubber Daily Chart – Forward Contract (as of April 15)

TOCOM Rubber Forward Contract Weekly Trading Data

Exchange and Industry News

No news this week.

Disclaimer:

This market review and news report contains information and data from sources believed to be reliable and accurate as of the date of publication but has not been independently verified. This report is for informational purposes only and no employee, director or connected person to Dot Commodity, Inc. takes any responsibility for the information or correctness of the content contained in the report. Dot Commodity, Inc. is strictly an online commodity futures broker and does not give any trading recommendations or financial advice to any of its clients, perspective clients or readers of this report. No part of this market review & news report is to be construed as an offer or solicitation to buy or sell any commodity futures or financial contract or product of any kind.

TOCOM Gold

TOCOM gold futures prices fell last week and the most actively traded forward contract month dropped by 1% or 50 yen. The forward contract closed Friday’s day trading session at 4798 yen per gram but got as low as 4621 yen in early Thursday trading. The contract fell from Monday through Wednesday on the back of a lower U.S. dollar spot price and a stronger yen. The U.S. spot price of gold fell to a 10-month low on Thursday as investors and traders continue to eschew gold and are moving funds into equities. However, after the Bank of Japan announced that they would greatly increase bond purchases to try and put a stop to deflation and would target a 2% inflation target last Thursday, the yen rapidly weakened and commodity and equity markets rallied in Japan. Disappointing economic data released in the U.S. last week sent commodity prices lower last week including oil and metals in most major markets. Increasing tensions on the Korean peninsula failed to trigger a much gold buying and in fact holdings of physical gold by exchange traded funds (ETF) continued their drop last week. In Asian markets demand for physical gold was reportedly fairly week despite the lower prices. In Japan the weaker yen has prompted some increase in demand by retail buyers but not on a large scale. Trading volume for TOCOM gold futures was very light on Monday and Tuesday before picking up later in the week and jumping to over 100,000 contracts traded on Thursday due to the volatility caused by the Bank of Japan announcement and the quick weakening of the yen. Open interest decreased by around 13,000 contracts and stood at 130,612 open contracts as of last Friday.

TOCOM Gold Daily Chart – Forward Contract (as of April 8)

TOCOM Gold Forward Contract Weekly Trading Data

TOCOM Platinum

Prices of TOCOM platinum futures were hit harder than gold prices last week as weak automobile sales in Europe and Japan coupled with the disappointing economic data released in the U.S. and a lower U.S. dollar spot rate contributed to helping send the market lower. The most actively traded forward contract fell by 1.7% or 80 yen last week. The forward contract closed Friday’s day trading session at 4742 yen per gram after dropping all the way down to 4543 yen during Thursday’s trading. Prices fell Monday through Thursday before clocking a small gain on Friday. The action to be taken by the Bank of Japan surprised the market with its aggressiveness and the yen hit a 3-year low against the U.S. dollar on Friday. The trend of weak vehicle sales in Japan continued in March as sales of new cars, trucks and buses fell by 15.6% in Japan year on year partly due to the expiration of subsidies for low-emission vehicles by the government. A similar story played out in Europe in March as well as car sales reportedly dropped by 16.4% in the first quarter in France and by 13.9% in Spain for the first quarter when compared year-on-year. In South Africa talks are ongoing between Anglo-American Platinum (Amplats), the world’s largest platinum miner, and the South African government regarding Amplats desire to close some mining operations due to their unprofitability at current market prices. The South African government is against this as it would make up to 16,000 miners redundant. Traders will be watching these negotiations for the rest of the month to see how they will turn out. If Amplats can obtain an agreement to close some of their unprofitable mining operations, this would lower supply in the market. Trading volume for TOCOM platinum futures was low early in the week before increasing dramatically on Thursday due to the Bank of Japan announcement and sudden drop in the yen. Open interest was little changed last week.

TOCOM Platinum Daily Chart – Forward Contract (as of April 8)

TOCOM Platinum Forward Contract Weekly Trading Data

TOCOM Rubber

Prices of TOCOM rubber futures continued their slide last week and after the benchmark forward contract broke through the 270 yen support level selling pressure increased. Slumping auto sales in Europe and Japan, lower oil prices, a stronger yen early in the week and high stock levels of natural rubber in both China and Japan also contributed to sending prices sharply lower. The forward contract fell to a 4-1/2 month low of 252 yen on Thursday and closed Friday’s day trading session at 253.8 yen despite a sharply weaker yen on Thursday and Friday. Market sentiment remains bearish as there are not many positive factors currently in the market to inspire buying. In physical markets in SE Asia demand reportedly remained weak last week as buyers in China and other countries were mainly on the sidelines due to the glut of rubber in warehouses in China and Japan and the anticipation of lower prices. Stock levels at warehouses monitored by the Shanghai Futures Exchange were reported as being at 3-year highs. Trading volume for TOCOM rubber futures was moderate last week and open interest was little changed for the week. Next week traders will be watching currency markets to see if the yen will continue to weaken and lend some support to sliding rubber prices.

TOCOM Rubber Daily Chart – Forward Contract (as of April 8)

TOCOM Rubber Forward Contract Weekly Trading Data

Exchange and Industry News

TOCOM March Trading Volume

Click on the link for trading volume details for March and for other TOCOM news during the last month.

http://www.tocom.or.jp/data/geppou/gaikyo201303_e.pdf

Disclaimer:

This market review and news report contains information and data from sources believed to be reliable and accurate as of the date of publication but has not been independently verified. This report is for informational purposes only and no employee, director or connected person to Dot Commodity, Inc. takes any responsibility for the information or correctness of the content contained in the report. Dot Commodity, Inc. is strictly an online commodity futures broker and does not give any trading recommendations or financial advice to any of its clients, perspective clients or readers of this report. No part of this market review & news report is to be construed as an offer or solicitation to buy or sell any commodity futures or financial contract or product of any kind.

TOCOM Gold

TOCOM gold futures prices were lower last week due to a stronger yen and a lower U.S. dollar based gold spot price. The most actively traded forward contract on TOCOM fell by 1.7% or 83 yen and closed Friday’s day trading session at 4848 yen per gram. The low for the week of 4842 yen was reached during trading on Friday. The U.S. dollar spot price decreased back below the $1600 per ounce level late last week as agreement was reached on a bailout plan for Cypress and positive economic data was released in the U.S. Data released in the U.S. showed that U.S. single family home prices increased in January at the fastest pace in 6 years and U.S. durable goods orders rose in February. These two factors helped to send stock markets higher and gold prices lower. For the month of March, the U.S. dollar spot price of gold rose by about 1.5% after falling every month from last October but for the first quarter of 2013 prices fell by nearly 5%. In physical gold market news, it was reported that Russia increased its gold holdings in February for the fourth straight month. In Asian physical markets, demand was reportedly fairly subdued last week with not a lot of buying interest and premiums on gold bars holding steady. Trading volume for TOCOM gold futures was fairly low last week as traders were watching developments in Cypress and waiting to see if the Bank of Japan would take further monetary stimulus steps. The fiscal year also ended at the end of March for many Japanese companies so many traders and commercials did not want to take new positions. Open interest increased by around 6,000 open contracts last week and stood at 143,098 as of last Friday.

TOCOM Gold Daily Chart – Forward Contract (as of March 29)

TOCOM Gold Forward Contract Weekly Trading Data

TOCOM Platinum

Prices of TOCOM platinum futures fell last week and the most actively traded forward contract lost 1.1% or 54 yen and closed last Friday’s day trading session at 4822 yen per gram. The low for the week was 4782 which was reached during last Friday’s trading. A stronger yen, a lower U.S. dollar spot price and ongoing concerns about economies in the EU contributed to lower prices for TOCOM platinum futures. Economic data released last Friday in Japan disappointed as factory output for February dropped unexpectedly and consumer prices also fell again and this helped to send prices of TOCOM platinum futures lower on Friday. In industry news, the world’s largest producer of platinum, Anglo American Platinum (Amplats), announced that their discussions with the South African government on their plans to close two mines which could cause a loss of up to 14,000 mining jobs were to be extended for another month until the end of April. Amplats lost money last fiscal year and almost half of their mining operations in South Africa are reportedly losing money. If the company closes the two mines, further labor strife could happen, which could disrupt supply after output was disrupted last year due to labor strikes and violence. Some analysts continue to be bullish on platinum and palladium prices going forward due to the ongoing closing of mines, labor issues and increasing production costs in South Africa despite the ongoing economic woes in Europe. Trading volume for TOCOM platinum futures was low last week and open interest was little changed.

TOCOM Platinum Daily Chart – Forward Contract (as of March 29)

TOCOM Platinum Forward Contract Weekly Trading Data

TOCOM Rubber

TOCOM natural rubber futures also fell last week as the benchmark forward contract fell by 3.7 yen or about 1.3%. The forward contract closed Friday’s day trading session at 274.8 yen per kilo and hit a weekly low of 270.1 yen during Friday’s trading session. The story in rubber markets over the past few weeks has been one of rising inventory levels. It was reported that stock levels of natural rubber in China hit their highest level since 2010 and stock levels at TOCOM designated warehouses rise by 1,719 tons from March 10^th to March 20^th and stood at 12,485 tons as of the 20^th. Falling automobile sales in Europe along with the banking problems in Cyprus also pressured rubber prices last week. The forward contract on TOCOM fell by around 6.5% for the month of March and traders will be watching the 269.5 yen level next week as this is more than a 3 month low which was reached on March 18^th. In physical market news, the Thai government announced last week that they will continue to voluntarily cut exports for another two months after the current program agreed upon by Thailand, Indonesia and Malaysia expired at the end of March. It was not clear yet if Indonesia and Malaysia would follow suit. Trading volume for TOCOM rubber futures was moderately low last week as the fiscal year for many companies in Japan ended at the end of March and commercial trading houses were thought to be standing pat and not taking out a lot of new positions. Open interest was little changed for the week.

TOCOM Rubber Daily Chart – Forward Contract (as of March 29)

TOCOM Rubber Forward Contract Weekly Trading Data

Exchange and Industry News

TOCOM Reduction in Order Validity of Unknown Cause

Click on the link below for details:

http://www.tocom.or.jp/news/2013/20130401OrderValidity.html

Disclaimer:

This market review and news report contains information and data from sources believed to be reliable and accurate as of the date of publication but has not been independently verified. This report is for informational purposes only and no employee, director or connected person to Dot Commodity, Inc. takes any responsibility for the information or correctness of the content contained in the report. Dot Commodity, Inc. is strictly an online commodity futures broker and does not give any trading recommendations or financial advice to any of its clients, perspective clients or readers of this report. No part of this market review & news report is to be construed as an offer or solicitation to buy or sell any commodity futures or financial contract or product of any kind.

TOCOM Gold

Prices of TOCOM gold futures were little changed for the week despite a higher U.S. dollar spot price. The most actively traded forward gold futures contract fell by 4 yen last week and closed last Friday’s day trading session at 4931 yen per gram with a weekly low of 4858 yen which was reached last Monday and a weekly high of 4979 yen which was reached last Thursday. The U.S. dollar spot price rose last week and got back over the $1600 per ounce mark and hit a one-month high on the news that Cyprus was in need of a bailout from the EU and was looking to levy a tax on bank deposits to raise funds to meet the requirements set-out by the EU to receive the additional funds. However, gold prices in Tokyo could not end the week in positive territory due to a stronger yen against the U.S. dollar and other major currencies. The newly appointed Bank of Japan governor could announce what steps the central bank will take to try and boost economic growth next week or soon after and many analysts are expecting aggressive steps to be taken and if so this could further weaken the yen and push gold and other commodities priced in yen higher. As the U.S. spot price rallied back over the $1600 per ounce mark, demand for physical gold reportedly slowed down in some Asian countries. The world’s largest gold ETF, the SPDR Gold Trust, had its holdings fall last week for the 12^th straight week. In other physical news, it was reported that India’s gold imports increased by 41% in the fourth quarter of last year despite the fact that import duties were raised from 2 to 6% by the Indian government in an effort to shrink their trade deficit. Trading volume for TOCOM gold futures was fairly moderate and open interest rose by around 4,000 contracts last week and stood at 136,327 as of last Friday. Traders will be watching to see if prices can get back above 5,000 yen next week.

 TOCOM Gold Daily Chart – Forward Contract (as of March 22)

TOCOM Gold Forward Contract Weekly Trading Data

*March 20 was a national holiday in Japan

TOCOM Platinum

TOCOM platinum futures prices fell last week as lower automobile sales in Europe, a stronger yen and worries about negotiations of a Cyprus bailout by the EU all contributed to the sell-off. The most actively traded forward contract fell by 2.1% or 104 yen per gram last week and closed last Friday’s day trading session at 4876 yen. The weekly high was 4989 yen and the low was 4781 yen. Cyprus rejected the terms set-out by the EU to receive a bailout and with banks in Cyprus closed there is a lot of uncertainty in the market as to what will happen there. Some analysts are concerned that the crisis in Cyprus could spread to other European countries and if it did could further dampen consumer demand in Europe. Sales of new vehicles in Europe reportedly fell by 10.2% in February and in Europe diesel engines are popular. Diesel engines use platinum in their exhaust systems where gasoline engines more often use palladium. The U.S. dollar spot rate for platinum held up fairly well last week under the circumstances but a stronger yen versus the U.S. dollar and other major currencies last week helped to send TOCOM platinum prices lower. Longer term, some analysts are still positive on platinum prices in 2013 and 2014 due to decreasing supply in South Africa due to more than half of platinum mines losing money at current market prices, ongoing labor issues and ever increasing production costs. Analysts also point out that because China is experiencing severe air pollution in some areas they could pass stricter air quality standards which could increase the demand for PGM metals for vehicle exhaust systems. Trading volume for TOCOM platinum futures was moderately low last week and open interest decreased by about 1,000 contracts and stood at just under 70,000 as of last Friday.

TOCOM Platinum Daily Chart – Forward Contract (as of March 22)

TOCOM Platinum Forward Contract Weekly Trading Data

*March 20 was a national holiday in Japan

TOCOM Rubber

Prices of TOCOM rubber futures tumbled last Monday by over 4% before recovering some of the losses later in the week. The benchmark forward contract ended up falling by 1.5% or 4.3 yen per kilo last week and closed Friday’s day trading session at 278.5 yen. The forward contract fell to about a 3-month low of 269.5 yen on Monday before recovering to quickly bounce back over the 270 yen level and stayed above that mark for the rest of the week. The proposed bailout of Cyprus by the EU sent most markets lower on Monday as the Nikkei fell along with most commodity futures contracts listed on TOCOM as the yen rose against most major currencies. Prices recovered on Tuesday and Thursday (Wednesday was a national holiday in Japan) before falling again on Friday. Prices rallied on Thursday after the U.S. Federal Reserve said that they would continue with an easy monetary policy for the time being. Stock levels of rubber remain high in Japan, China and SE Asian rubber producing countries and this factor has weighed on rubber markets over the past few weeks even though Thailand, the world’s largest rubber producer, is now in dry season where rubber tree’s latex production drops and the trees shed leaves. Stock levels at TOCOM designated warehoused increased by 1,468 tons from Feb. 28^th to March 10^th and stood at 10,766 tons as of the 10^th. Looking at next week’s trading, some analysts peg the support level at 270 yen and with weakened technical indicators this level should be an important level to watch. Trading volume for rubber futures was moderately low and open interest was little changed.

TOCOM Rubber Daily Chart – Forward Contract (as of March 22)

TOCOM Rubber Forward Contract Weekly Trading Data

*March 20 was a national holiday in Japan

Exchange and Industry News

Foreign Customer Trades Set New Record for February

Click on the link for details:

http://www.tocom.or.jp/news/2013/20130321ForeignTradeNewRec.html

Disclaimer:

This market review and news report contains information and data from sources believed to be reliable and accurate as of the date of publication but has not been independently verified. This report is for informational purposes only and no employee, director or connected person to Dot Commodity, Inc. takes any responsibility for the information or correctness of the content contained in the report. Dot Commodity, Inc. is strictly an online commodity futures broker and does not give any trading recommendations or financial advice to any of its clients, perspective clients or readers of this report. No part of this market review & news report is to be construed as an offer or solicitation to buy or sell any commodity futures or financial contract or product of any kind.

TOCOM Gold

Prices of TOCOM gold futures rose last week but remained under the 5,000 yen per gram level that is proving difficult to get back over. Last Monday the most actively traded forward contract gained 47 yen on the back of a weaker yen before settling down for the rest of the week in quiet trading as global gold markets remained in a trading range with the U.S. dollar spot price trading in the $1550-1600 dollar range. The TOCOM forward gold futures contract closed Friday’s day trading session at 4935 yen which marked a 1.7% gain for the week. In physical markets, there were reports again out of SE Asia that buying picked up again when prices got near the $1560 per ounce level but dried up as prices neared the $1600 per ounce level. Rallying equity markets in the U.S. and a better economic outlook due to positive data being released there has driven some institutional investors and traders to exit their gold positions and redeploy their capital in other markets such as equities. As evidence of this, the SPDR Gold Trust, the world’s largest physically gold backed, announced more outflows and last week and holdings hit their lowest level since October 2011 and 11^th straight weekly decline. In other industry news, it was reported that South African gold production fell 8.1% by volume in January compared with the previous year. Trading volume for TOCOM gold futures last week was moderate and open interest was little changed and stood at 132,021 open contracts as of March 15^th.

TOCOM Gold Daily Chart – Forward Contract (as of March 15)

TOCOM Gold Forward Contract Weekly Trading Data

TOCOM Platinum

Prices of TOCOM platinum futures made slight gains last week on the back of strong automobile sales in China, better than expected economic data released in the U.S. and hope that “Abenomics” would help increase industrial production in Japan. The most actively traded forward TOCOM forward platinum futures contract gained 25 yen per gram and closed Friday’s day trading session at 4980 yen. The contact did get over the 5,000 yen mark early in the trading week but closed below that mark on every day except Tuesday last week. Data released by the China Association of Automobile Manufacturers showed that vehicle sales in January and February of this year increased by 15% when compared with the same two-month period last year. However, putting a damper on things somewhat, it was reported early last week that India announced that passenger automobile sales fell by 26% in February year-on-year. The huge drop in sales was attributed to higher financing costs and more expensive gasoline prices by some analysts. South African output is still expected to continue to fall this year as many mining projects have become unprofitable due to higher costs and labor problems so some analysts expect the U.S. dollar spot price to have strong support around $1500 per ounce. TOCOM traders will be watching currency markets and the results of the U.S. Federal Reserve meeting next week in the U.S. Trading volume for TOCOM platinum futures was moderate last week and open interest rose by over 1,000 contracts to stand at 71,126 open contracts as of last Friday.

TOCOM Platinum Daily Chart – Forward Contract (as of March 15)

TOCOM Platinum Forward Contract Weekly Trading Data

TOCOM Rubber

TOCOM natural rubber prices fell sharply last week as the benchmark forward contract hit a 3 month low and shed 5.3% or 15.7 yen per kilo on rising stock levels of natural rubber and sharply lower equity markets in China. The forward contract closed last Friday’s day trading session at 282.8 yen after reaching a 3 month low of 272.4 yen during Thursday’s trading. Stock levels in Tokyo, Shanghai and Thailand reportedly continued to rise and the sell-off in Chinese equity markets spooked the rubber market as China is the world’s largest consumer of natural rubber. On Wednesday, China announced that they would change their monetary policy to neutral from accommodating and TOCOM rubber prices followed Chinese markets sharply lower and the forward contract lost 12.4 yen during Wednesday’s trading. Latex production by rubber trees has slowed in many areas due to the seasonal dry season but inventory levels are very high so the market has not received much support if any due to the seasonal factor. Technically speaking the market does not look to have a lot of support after hitting the 3 month low so prices could drop further in the near term according to some analysts. Trading volume was moderately high last week due to the sell-off and open interest was little changed and stood at 22,374 as of last Friday.

TOCOM Rubber Daily Chart – Forward Contract (as of March 15)

TOCOM Rubber Forward Contract Weekly Trading Data

Exchange and Industry News

TOCOM Trading Volume and Activities for February 2013

Click on the link for details: http://www.tocom.or.jp/data/geppou/gaikyo201302_e.pdf

Disclaimer:

This market review and news report contains information and data from sources believed to be reliable and accurate as of the date of publication but has not been independently verified. This report is for informational purposes only and no employee, director or connected person to Dot Commodity, Inc. takes any responsibility for the information or correctness of the content contained in the report. Dot Commodity, Inc. is strictly an online commodity futures broker and does not give any trading recommendations or financial advice to any of its clients, perspective clients or readers of this report. No part of this market review & news report is to be construed as an offer or solicitation to buy or sell any commodity futures or financial contract or product of any kind.

TOCOM Gold

TOCOM gold futures prices fell last week as the most actively traded forward contract fell by 1.1% or 53 yen per gram and closed last Friday’s day trading session at 4719 yen. The forward contract fell by 88 yen last Tuesday on the back of a stronger yen after Italy held a parliamentary election and the results did not yield a clear winner which brought new worries into the market about the future of the euro and the EU. However, gold prices in Tokyo rose slightly on Wednesday and Thursday after the yen weakened again against the U.S. dollar. The forward contract fell again on Friday by 57 yen per gram as the U.S. dollar spot gold price fell by around 1% on Thursday in the U.S. as equity markets rallied and institutional investors continued to cut their exposure to gold. The SPDR Gold Trust which is the world’s largest gold exchange traded fund (ETF) continued to see large outflows as the trust’s holdings fell by more than 73 tons in February. However, there were reports on increased buying of physical gold in Asia below the U.S. dollar spot price of $1600 last week and some central banks continue to add to their holdings. Goldman Sachs reportedly cut their gold price forecast for 2013 from $1810 per ounce to $1600 last week. Traders on TOCOM will be watching currency markets closely next week as incoming leadership at the Bank of Japan is expected to further ease monetary policy which could further weaken the yen against other major currencies which would help to support commodity prices in Japan. Trading volume for gold futures on TOCOM was strong last week and open interest increased by around 7,000 contracts and stood at 142,868 as of last Friday.

TOCOM Gold Daily Chart – Forward Contract (as of March 1)

TOCOM Gold Forward Contract Weekly Trading Data

TOCOM Platinum

TOCOM platinum futures prices dropped last week on eased concerns that supply in South Africa will be disrupted, soft economic data released in China and in Europe and concern by the market about the future of the EU after elections in Italy failed to elect a clear leader. The most actively traded TOCOM platinum futures forward contract fell by 3.5% or 172 yen last week and closed Friday’s day trading session at 4742 yen per gram after getting as low as 4731 yen which was more than a 6 week low. The U.S. dollar platinum spot price hit a 7 week low last week after it was reported that Chinese factory growth hit a five month low and earlier in the week it was also reported that in South Africa the Association of Mineworkers and Construction Union signed an agreement to work to avoid labor strife and bring stability to the industry after having numerous labor issues hamper platinum production there since last summer. South African mining companies are struggling to make a profit at current platinum prices due to rising production costs and the industry got more bad news last week as it was announced that the state utility company was ready to increase electricity prices by 8% which if done will further pressure margins and the industry could close more mining operations which are unprofitable. TOCOM platinum futures trading volume was moderate last week and open interest fell by about 1,700 contracts and stood at 70,014 as of last Friday.

TOCOM Platinum Daily Chart – Forward Contract (as of March 1)

TOCOM Platinum Forward Contract Weekly Trading Data

TOCOM Rubber

TOCOM natural rubber futures prices fell last week as the benchmark forward contract dropped by 13.1 yen per kilo which was a fall of 4.4%. The forward contract closed Friday’s day trading session at 284.0 yen per kilo and the weekly low of 283.0 yen was also reached earlier in Friday’s trading session. The market was under pressure due to soft economic data, rising stock levels in Japan and China and little physical buying being done in SE Asian rubber markets over the $3 per kilo price. There were reports of some deals getting done late in the week when prices dropped below the $3 mark. Fresh concerns by the market about the future of the EU came into the market after the elections in Italy and on Tuesday in Tokyo we saw a sell-off of most commodities after equity and commodity markets fell overnight in the U.S and Europe. Adding to the weakness in the market last week was weaker than expected economic data released in China caused some traders to liquidate long positions on concerns that demand could dampen if economic activity slows there. Rubber stocks at TOCOM designated warehouses increased from February 10^th to February 20^th by 982 tons and stood at 8,659 tons as of the 20^th. There do not seem to be many bullish factors in the market at the current time but one factor that could support prices is that the dry season is beginning in Thailand and Malaysia when rubber tree latex production drops. Traders will be watching to see if the 280 yen level holds next week on the forward contract as that is seen as offering technical support. Trading volume was quite high last week and open interest for rubber futures dropped by around 3,000 contracts and stood at 24,290 as of last Friday.

TOCOM Rubber Daily Chart – Forward Contract (as of March 1)

TOCOM Rubber Forward Contract Weekly Trading Data

Exchange and Industry News

No news this week.

Disclaimer:

This market review and news report contains information and data from sources believed to be reliable and accurate as of the date of publication but has not been independently verified. This report is for informational purposes only and no employee, director or connected person to Dot Commodity, Inc. takes any responsibility for the information or correctness of the content contained in the report. Dot Commodity, Inc. is strictly an online commodity futures broker and does not give any trading recommendations or financial advice to any of its clients, perspective clients or readers of this report. No part of this market review & news report is to be construed as an offer or solicitation to buy or sell any commodity futures or financial contract or product of any kind.

TOCOM Gold

Prices of TOCOM gold futures fell last week along with many commodities around the globe. The most actively traded forward contract closed the trading week down 2% or 97 yen per gram and closed Friday’s day trading session at 4772 yen. The Japanese yen strengthened a bit against the U.S. dollar as well last week and this also added downward pressure on commodity prices in Tokyo. Minutes from the U.S. Federal Reserve Bank January FOMC meeting were released on Wednesday in the U.S. and the minutes indicated that some Fed officials think that they may have to halt or slow down buying bonds, which they have been doing to try and stimulate the economy and employment, before their stated inflation and employment targets are met spooked markets. The U.S. spot price of gold fell to just above the $1550 mark and on Thursday in Tokyo TOCOM gold prices fell by over 100 yen per gram. Prices in Tokyo did claw back some of the losses on Friday when the forward contract gained 54 yen per gram. Physical demand was reportedly strong early last week in China and SE Asia after the Chinese Lunar New Year’s holiday finished but this was offset by selling by hedge funds and speculators in the U.S. and Europe. Liquidation also continued in the world’s largest gold exchange traded fund (SPDR Gold Trust) as they reported that holdings dropped to a 5-month low and had its biggest one-day drop in a year and a half last Thursday. However, some analysts do not see central banks in the U.S., Europe or Japan ending their easy monetary policies any time soon and if correct would lend support to gold prices. Trading volume for the TOCOM gold contract was moderate and open interest rose by about 6,000 contracts and stood at 135,400 as of last Friday.

TOCOM Gold Daily Chart – Forward Contract (as of Feb 22)

TOCOM Gold Forward Contract Weekly Trading Data

TOCOM Platinum

Prices of TOCOM platinum futures rose on Monday after there were reports of violence at Anglo American Platinum’s Rustenburg mining operations in South Africa and that workers were expected to not show-up for work on Tuesday in protest. Labor problems have affected production in South Africa since last summer along with rising production costs and since the country accounts for around 80% of global platinum production any further drop in production could move platinum prices higher. However, things were not as bad as initially thought and global macro issues drove the market for the rest of the week and platinum prices fell on TOCOM for the rest of the week. The most actively traded forward contract sunk by 155 yen for the week or about 3.1% and closed Friday’s trading session at 4914 yen per gram. Factors that took the market lower last week included the release of minutes from the U.S. Federal Reserve FOMC January meeting as mentioned above, a decline of car sales in January in Europe of 8.7% where diesel engines are popular and use platinum in their exhaust systems and worse than expected economic data was released in the U.S. and Germany. Some analysts expect that platinum prices will outperform gold prices this year as unprofitable mining operations are expected to shut-down in South Africa as rising production costs and labor strife continue to plague the industry along with the specter of rising taxes on mining production there. Trading volume for TOCOM platinum futures was moderately high last week as prices fell and open interest decreased by around 6,500 contracts and stood at 71,777 as of last Friday.

TOCOM Platinum Daily Chart – Forward Contract (as of Feb 22)

TOCOM Platinum Forward Contract Weekly Trading Data

TOCOM Rubber

Prices of TOCOM natural rubber futures fell below the 300 yen mark per kilogram last week and the benchmark forward contract plunged by 24 yen or 7.5% for week and closed Friday’s day trading session at 297.1 yen. The forward contract hit a 2 month low of 292.7 yen during Thursday’s trading. Prices started their descent on Tuesday as the Thai government announced that they would not renew their program of buying rubber on the open market to support prices. The program is scheduled to expire at the end of March this year. Selling pressure continued on Wednesday after the forward contract broke below the 310 yen per kilo level and continued on Thursday after the fall in commodity prices in the U.S. and then technical selling came into the market as the 300 yen mark was breached. Automobile sales figures for January were mixed as China reported record sales of 1.49 million vehicles but Europe reported an 8.7% drop in new car registrations for the month which was the lowest on record with records having been kept since 1990. Trading was heavy on Wednesday and Thursday with the rest of the week being fairly low to moderate. Open interest fell by over 6,000 contracts last week and stood at 27,246 as of last week.

TOCOM Rubber Daily Chart – Forward Contract (as of Feb 1)

TOCOM Rubber Forward Contract Weekly Trading Data

Exchange and Industry News

Foreign Customer Trading Volume Hits New Record on TOCOM

Trading volume by foreign based clients hit a new record in January. Click on the link below for details:

http://www.tocom.or.jp/news/2013/20130221_fcustomertrades.html

Disclaimer:

This market review and news report contains information and data from sources believed to be reliable and accurate as of the date of publication but has not been independently verified. This report is for informational purposes only and no employee, director or connected person to Dot Commodity, Inc. takes any responsibility for the information or correctness of the content contained in the report. Dot Commodity, Inc. is strictly an online commodity futures broker and does not give any trading recommendations or financial advice to any of its clients, perspective clients or readers of this report. No part of this market review & news report is to be construed as an offer or solicitation to buy or sell any commodity futures or financial contract or product of any kind.

TOCOM Gold

TOCOM gold futures prices rose last week on a weaker yen versus the U.S. dollar and a slightly higher U.S. dollar based gold spot price. The most actively traded forward contract on TOCOM rose by 68 yen or 1.4% last week which set another all-time high record for the contract. The forward contract closed Friday’s day trading session at 4942 yen per gram after making a new all-time high earlier on Friday of 4946 yen. Investor interest in gold has picked up in recent weeks in Japan due to the weakening yen and expectations that the Bank of Japan will continue to keep an easy monetary policy for at least the near future with the new Abe administration taking office and the upcoming appointment of a new Bank of Japan governor. Next week some traders and analysts are expecting the gold market to make a run at the 5,000 yen level which would not only make a new all-time high price record but could also bring additional interest to gold in Japan. In gold physical market news, it was reported last week that the central banks of Russia and Turkey increased their gold reserves last December and the U.S. mint reported record sales of silver coins and robust gold coin sales last month. In India and China physical demand for gold was said to be fairly quiet last week when compared with previous years as Indian dealers reportedly have ample stock and are on the sidelines and in China the Lunar New Year holiday will start next week but gold sales have reportedly been steady but down from the past few years. Trading volume for TOCOM gold futures was moderately high last week and open interest fell by around 7,000 contracts and stood at 136,138 open contracts as of last Friday.

TOCOM Gold Daily Chart – Forward Contract (as of Feb 1)

TOCOM Gold Forward Contract Weekly Trading Data

TOCOM Platinum

Sentiment in platinum and palladium markets remains quite positive and price movement for TOCOM platinum futures reflected this last week. The most actively traded platinum forward contract on TOCOM continued its upward trajectory and gained 45 yen or about 0.9% last week. The forward contract closed Friday’s day trading session at 4993 yen per gram after getting as high as 4997 yen earlier in the trading day. Sentiment remains high in the market due to decreasing production in South Africa and increased confidence in the overall global economic condition. In Japan, there is an expectation that economic activity will pick-up later this year and next due to increased monetary easing by the Bank of Japan and stimulus programs being introduced by the government to try and stimulate economic growth and a target inflation rate of 2%. Outside of Europe, demand for motor vehicles has been quite strong in the U.S., Asia and other markets with some analysts expecting global car sales to increase by more than 2% this year. Most analysts expect the overall global platinum market to be in a deficit this year as it was in 2012 due to expected lower production in South Africa due to continuing labor problems and increasing production costs which have caused some mining companies there to close some mines as some mining operations have become unprofitable. Traders will be watching to see if prices can get back over the 5,000 yen per gram mark next week and will of course be watching the yen to see if its recent weakness will continue. Trading volume for TOCOM platinum futures was moderately high and open interest increased by about 2,000 contracts and stood at 65,032 open contracts as of last Friday.

TOCOM Platinum Daily Chart – Forward Contract (as of Feb 1)

TOCOM Platinum Forward Contract Weekly Trading Data

TOCOM Rubber

Concerns in the market of weak demand from China due to high stock levels there kept prices of TOCOM rubber futures in check last Monday through Thursday in spite of a slightly weaker yen against other major currencies and higher global oil prices. However, on Friday the benchmark forward contract pushed through the 320 yen resistance level and closed Friday’s day trading session at 323.3 yen per kilo which was a gain of 8.1 yen for the trading day and for the week the forward contract gained 11.8 yen or about 3.8%. This level marked a 9 month high as prices rose above 320 yen on the yen weakening to around 92 yen versus the U.S. dollar and Brent crude oil prices rising to around $115 per barrel on worries about increased tensions in the Middle East. In SE Asia physical rubber markets, there were reports last week that there were some deals done by a major tire manufacturer and some Chinese buyers but overall the market was fairly quiet. The next key resistance level will be the 330 yen mark according to some traders and expectations are prices will try and break this mark next week as momentum is expected to remain strong early in the week after the market closed above the 320 yen mark last Friday. Rubber stock levels at TOCOM designated warehouses increased by 471 tons from January 10^th to January 20^th and stood at 4,412 tons as of the 20^th. Late in the week trading volume was quite high and open interest increased by about 3,000 contracts and stood at 33,957 as of last Friday.

TOCOM Rubber Daily Chart – Forward Contract (as of Feb 1)

TOCOM Rubber Forward Contract Weekly Trading Data

Exchange and Industry News

• Finalized Contract Specifications for      TOCOM Agriculture Products and Sugar Market

Click on the link for the contract details. The TGE corn, soybean, azuki red bean and sugar contracts will migrate to TOCOM beginning from the opening of the morning trading session on February 12^th.

http://www.tocom.or.jp/documents/20130131E_AgriSpecs.pdf

• TOCOM Gold Contract Makes another New      All-Time High

Click on the link for details:

http://www.tocom.or.jp/news/2013/20130201GoldHighRenews.html

Disclaimer:

This market review and news report contains information and data from sources believed to be reliable and accurate as of the date of publication but has not been independently verified. This report is for informational purposes only and no employee, director or connected person to Dot Commodity, Inc. takes any responsibility for the information or correctness of the content contained in the report. Dot Commodity, Inc. is strictly an online commodity futures broker and does not give any trading recommendations or financial advice to any of its clients, perspective clients or readers of this report. No part of this market review & news report is to be construed as an offer or solicitation to buy or sell any commodity futures or financial contract or product of any kind.

TOCOM Gold

Prices of TOCOM gold futures hit a new all-time high last Friday as the benchmark forward contract reached a high of 4911 yen per gram. The gold futures contract was first listed in 1982. This marked a rise of 117 yen (2.4%) for the week. Prices were fairly steady early in the week until Friday when the yen weakened against the U.S. dollar which caused gold priced in yen to spike and hit the new all-time high on TOCOM. The U.S. dollar priced spot price rose slightly last week which also helped to push prices higher in Tokyo. Interest in gold by institutional investors has been increasing in Japan recently as the yen has rapidly weakened against the U.S. dollar over the past month due to expectations that the Bank of Japan will soon increase its monetary stimulus policy this year. Japanese retail investors have been net sellers of gold during the more extended rally in global gold prices but some analysts think that this trend could change if the yen further weakens against other major currencies. In the physical market, there were reports of stronger demand for gold bullion and coins in China early in the week due to the drop in the U.S. dollar spot price but reportedly slowed later in the week due to the spot price recovering some of its earlier losses. Additionally, the U.S. Mint announced last week that demand for gold and silver coins have been robust so far in January and deliveries of American Eagle silver coins will be delayed due to a lack of supply. Overall market sentiment remains mixed in global gold markets including TOCOM as recent strong economic data released in the U.S. and China has led some to believe that the U.S. Federal Reserve could tighten monetary policy if economic growth continues but on the other hand some are worried about the U.S. debt ceiling negotiations which are going on in Washington D.C. As one would expect with prices hitting a new all-time high, trading volume was robust and open interest increased slightly to stand at 132,517 open contracts as of last Friday.

TOCOM Gold Daily Chart – Forward Contract (as of Jan 18)

TOCOM Gold Forward Contract Weekly Trading Data

TOCOM Platinum

Prices of TOCOM platinum futures continued their strong performance last week and held their premium over TOCOM gold futures prices. The most actively traded forward contract gained 4.8% or 227 yen per gram and closed the week at 4947 yen which is more than a two and a half year high. Prices of platinum futures strongly rallied last week due to stronger than expected economic data being released in the U.S. and China, supply concerns in South Africa and the weaker yen against the U.S. dollar. The U.S. government released labor and housing market data which were better than expected by analysts and China released data showing that economic growth had picked up a little steam. In South Africa, the world’s largest platinum miner, Anglo-American Platinum (Amplats) announced that they had decided to close a couple of mines and sell another as part of their restructuring plan. Many mining companies have experienced labor problems in recent months and mining costs have risen rapidly which have pressured profits. Some analysts expect other platinum miners to also close some unprofitable mines which would further reduce global supply and this has contributed to the recent strong rally in platinum prices. Trading volume for TOCOM platinum futures was moderately high last week and open interest rose by about 3,000 contracts to stand at 60,132 as of last Friday.

TOCOM Platinum Daily Chart – Forward Contract (as of Jan 18)

TOCOM Platinum Forward Contract Weekly Trading Data

TOCOM Rubber

TOCOM rubber futures prices marked gains again last week with a strong rally on Friday pushing prices into positive territory for the week. Prices fell last Wednesday due to a stronger yen against the U.S. dollar as some traders decided to liquidate long positions including some institutional traders and funds. However, the yen reversed its direction late in the week on Friday and rubber prices rallied as the benchmark forward contract gained 11 yen. The positive economic data released in China and the U.S. also helped to push prices higher on Friday as this raised hopes that demand for natural rubber will pick-up which caused some traders to take fresh long positions on Friday. For the week the benchmark forward contract gained 4.2 yen or 1.3% and closed last Friday’s day trading session at 316.5 yen after hitting a weekly high last Tuesday of 319.1 yen. Some analysts expect prices to be range bound next week in the 300 to 320 yen range and those two levels being the near term support and resistance levels. In physical market news, the Thai government reportedly stated that they have not decided whether to extend their rubber market intervention program after it expires in March of this year. Last year, the Thai government began purchasing natural rubber on the open market to support local farmers as prices fell last spring and summer. Last summer, the governments of Thailand, Indonesia and Malaysia also agreed to lower exports to try and support prices. Trading volume for TOCOM rubber futures was moderately high and open interest was little changed and stood at 31,413 open contracts as of last Friday.

TOCOM Rubber Daily Chart – Forward Contract (as of Jan 18)

TOCOM Rubber Forward Contract Weekly Trading Data

Exchange and Industry News

TOCOM Gold Price Hits New All-Time High of 4911 yen

Click on the link for details:

http://www.tocom.or.jp/news/2013/20130118GoldHigh.html

Disclaimer:

This market review and news report contains information and data from sources believed to be reliable and accurate as of the date of publication but has not been independently verified. This report is for informational purposes only and no employee, director or connected person to Dot Commodity, Inc. takes any responsibility for the information or correctness of the content contained in the report. Dot Commodity, Inc. is strictly an online commodity futures broker and does not give any trading recommendations or financial advice to any of its clients, perspective clients or readers of this report. No part of this market review & news report is to be construed as an offer or solicitation to buy or sell any commodity futures or financial contract or product of any kind.