BEIJING (Dec 7): Benchmark Tokyo rubber futures rose on Friday, as macro market mood remained positive after a trade truce was announced between China and the United States over the weekend.
“Futures have recovered a little this week, mainly supported by easing Sino-U.S. trade relation, and the talks between major producers set in mid-December,” said Tang Xiaonan, analyst, JLC Network Technology Co Ltd.
“Physicals trade was bad, as supplies overseas are quite high and domestic stocks remain ample. Demand on the other side is quite flat,” Tang said.
TOCOM’s technically specified rubber (TSR) 20 futures contract for June delivery rose 0.3 yen to close at 145.2 yen per kg.
The most active rubber contract on the Shanghai futures exchange for May delivery fell 10 yuan (US$1.45) to finish at 11,245 yuan per tonne.
China and the United States agreed during the meeting of the Group of 20 (G20) leading economies in Argentina over the weekend not to impose additional trade tariffs for at least 90 days, while the pair hold talks to resolve existing disputes.
Top rubber producers Thailand, Malaysia and Indonesia will meet on Dec 16 to discuss ways to prop up distressed prices, including potentially curbing exports, a senior Indonesian trade official said on Wednesday.
(US$1 = 112.8100 yen)
(US$1 = 6.8798 Chinese yuan)