Monday, 23 March 2015 17:45
TOKYO: Benchmark Tokyo rubber futures ended 1.7 percent higher on Monday, bolstered by a jump in Shanghai futures to a near three-week high after data showed a sharp decline in China’s rubber stockpiles.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, have recently been under pressure by worries over slack demand in China, the world’s top buyer, but the near 5 percent fall in Shanghai stockpiles eased those concerns, brokers said.
Rubber inventories in warehouses monitored by the Shanghai Futures Exchange fell 4.7 percent from the previous week, the exchange said on Friday after the TOCOM’s close.
“The (Shanghai inventory) data may have triggered the jump today,” said a Tokyo-based source with a broker.
The Tokyo Commodity Exchange rubber contract for August delivery finished 3.6 yen higher at 214.1 yen per kg. The contract rose as high as 214.9 yen, its loftiest since March 17.
The U.S. dollar was quoted around 119.87 yen, down from around 120.72 yen on Friday afternoon.
The most-active rubber contract on the Shanghai futures exchange for September delivery rose 460 yuan, or 3.7 percent, to finish at 12,990 yuan per tonne. It earlier rose to 13,080 yuan, its highest since March 4.
The front-month rubber contract on Singapore’s SICOM exchange for April delivery last traded at 142.4 U.S. cents per kg, down 0.5 cents.
Copyright Reuters, 2015
