24.6 C
New York
Thursday, August 11, 2022

Tokyo rubber futures hit 1-week high on weak yen

TOKYO, Jan 16 (Reuters) – Benchmark Tokyo rubber futures ended up 0.3 percent on Thursday after hitting a one-week high earlier on the back of a weaker yen and upbeat industrial data.

The market found support after Japan’s core machinery orders rose a bigger-than-expected 9.3 percent in November, marking a second straight month of gains in a sign that companies may ramp up investment to meet strong domestic demand.

The benchmark rubber contract on the Tokyo Commodity Exchange (TOCOM) for June delivery rose 0.8 yen to settle at 256.4 yen ($2.45) per kg.

The contract touched a one-week high of 258.9 yen earlier, after having plunged to a 5-month low this week on a rising yen and worries about demand from China.

“There was a big differential between the front-month contract and June contract, so there was a buy-back on June contract, which has the most liquidity,” said Kaname Gokon, general manager of research at broker Okato Shoji.

Indonesian rubber changed hands below 100 U.S. cents a pound for the first time since the middle of last year as declines in benchmark Tokyo futures and soaring inventory in main consumer China pressured prices, dealers said on Wednesday.

The most-active rubber contract on the Shanghai futures exchange for May delivery rose 90 yuan to finish at 16,755 yuan ($2,800) per tonne.

The front-month rubber contract on Singapore’s SICOM exchange for February delivery last traded at 218.50 U.S. cents per kg, up 0.4 cent.

($1 = 104.4750 Japanese yen)

($1 = 6.0460 Chinese yuan) (Reporting by Osamu Tsukimori; Editing by Sunil Nair)

Related Articles


Please enter your comment!
Please enter your name here

Stay Connected

- Advertisement -

Latest Articles

Popular Articles