TOKYO (March 25): Benchmark Tokyo rubber futures inched up in thin trade on Friday, but were not far from a one-week closing low hit in the previous session, as investors were reluctant to take fresh positions ahead of the weekend and the end of the Japanese financial year.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, touched a more than two-week high earlier this week, before reversing the direction on softer oil prices, dealers said.
“Trade was lacklustre as investors in Singapore and Western countries were away for the Good Friday holiday,” said Hiroyuki Kikukawa, general manager of research at Nissan Securities.
The TOCOM contract for August delivery <0#2JRU:> finished 0.2 yen higher at 175.3 yen (US$1.55) per kg, near Thursday’s close of 175.1 yen, the lowest settlement since March 16. For the week, it fell 2%.
The March contract expired on Friday at 167 yen.
“The TOCOM benchmark looks to be forming a double-top, which suggests a weakness from a technical point of view,” Kikukawa said.
“If it slides below 165–166 yen, the trend will become bearish,” he said, adding investors would also focus on the US job data due next Friday.
The most-active rubber contract on the Shanghai futures exchange for September delivery rose 160 yuan to finish at 11,710 yuan (US$1,797.53) per tonne.
Singapore’s SICOM exchange was closed on Friday for the Good Friday holiday.
(US$1 = 112.9600 yen)
(US$1 = 6.5145 Chinese yuan)
