TOKYO (May 27): Benchmark Tokyo rubber futures rose on Friday, helped by firmer Shanghai futures and as investors looked for bargains, but ended the week with a small drop, marking a fifth straight weekly loss.
The Tokyo Commodity Exchange rubber contract for November delivery <0#2JRU:> finished 2.7 yen, or 1.7%, higher at 162.1 yen (US$1.48) per kg. But for the week, it slid 0.6%.
TOCOM futures, which set the tone for tyre rubber prices in Southeast Asia, have lost more than 20% since an April high of 205.1 yen, weighed by concerns over weak demand in top buyer China.
“Investors stepped up position adjustments ahead of the weekend and after a sharp slide over the past month,” a Tokyo-based dealer said, adding that higher Shanghai futures lent support.
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The most-active rubber contract on the Shanghai futures exchange for September delivery rose 115 yuan to finish at 10,535 yuan (US$1,605.95) per tonne.
“TOCOM prices seem to be in a technical rebound phase,” said Satoru Yoshida, commodity analyst at Rakuten Securities.
“I expect the market to head higher next week,” he added.
The front-month rubber contract on Singapore’s SICOM exchange for June delivery last traded at 127.0 US cents per kg, down 0.7 cent.
(US$1 = 109.6700 yen)
(US$1 = 6.5600 Chinese yuan renminbi)
