TOKYO, June 30 (Reuters) – Benchmark Tokyo rubber futures rose on Thursday as the initial impact from Britain’s vote to exit the European Union faded and the yen softened, but they booked a near 12 percent quarterly loss amid lingering concerns about slower demand in top buyer China. The Tokyo Commodity Exchange (TOCOM) rubber contract for December delivery JRUc6 0#2JRU: finished 3 yen, or 2 percent, higher at 156 yen ($1.52) per kg. But the TOCOM futures, which set the tone for tyre rubber prices in Southeast Asia, lost 5.7 percent this month and 11.6 percent in the April-June quarter. “Concerns over Brexit faded.
That helped a recovery in commodities prices including rubber,” said a Tokyo-based dealer. With fading concerns over the so-called Brexit, oil prices rose 4 percent on Wednesday, though they gave up some of the gains on Thursday as the prospects for supply improved and the economic outlook darkened.
O/R “The weaker yen also lent support to the TOCOM rubber,” the dealer added. The safe-haven Japanese yen retreated as global markets regained a semblance of calm after last week’s Brexit shock.
The dollar was at 102.78 yen JPY= in late Asia trade on Thursday after sliding to 99.00 last Friday, a trough last seen in November 2013. A weaker yen makes yen-denominated assets more affordable when purchased in other currencies.
“Still, the rubber market looks fragile.I think further gains will be limited as oversupply concerns continue,” the dealer said.
The most-active rubber contract on the Shanghai futures exchange for September delivery SNRcv1 rose 135 yuan to finish at 11,425 yuan ($1,719.78) per tonne. The front-month rubber contract on Singapore’s SICOM exchange for July delivery STFc1 last traded at 133.0 U.S. cents per kg, down 1.4 cents.
($1 = 102.8400 yen)
($1 = 6.6433 Chinese yuan)
(Reporting by Yuka Obayashi; Editing by Subhranshu Sahu)
