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Monday, January 24, 2022

TOCOM rubber jumps to 1-1/2-week high on supply concerns

TOKYO, June 20 (Reuters) – Benchmark Tokyo rubber futures jumped to their highest in one-and-a-half weeks on Monday on concerns that supply could get tighter due to bad weather, and as easing concerns over Brexit boosted investor risk appetite, dealers said. The Tokyo Commodity Exchange (TOCOM) rubber contract for November delivery JRUc6 0#2JRU: finished 5.4 yen, or 3.6 percent, higher at 155.9 yen ($1.49) per kg, the highest close since June 8. Earlier in the session, the contract rose as much as 4.4 percent to 157.1 yen, its highest since June 9. The TOCOM futures, which set the tone for tyre rubber prices in Southeast Asia, climbed 1.7 percent last week, their first weekly gain in eight. “Physical offer prices in Thailand rose late last week due to speculations that rubber supply may get tighter due to draught, which supported Shanghai futures overnight and TOCOM prices today,” said Toshitaka Tazawa, an analyst with Fujitomi Co.

The most-active rubber contract on the Shanghai futures exchange for September delivery SNRcv1 soared 375 yuan to finish at 10,975 yuan ($1,667.65) per tonne. “Less anxiety over Brexit also lent support,” Tazawa added.

Three British opinion polls ahead of the EU membership referendum on June 23 showed the “Remain” camp recovering some momentum, although the overall picture remained one of an evenly split electorate. Oil extended gains in Asian trading on Monday as a weaker dollar and easing worries over Britain’s possible exit from the EU helped support crude prices.

O/R Japan’s Nikkei (XC0009692440) soared to a one-week high, posting the biggest single-day gain in two months, as Brexit worries receded somewhat after weekend polls showed the campaign to keep Britain in the EU regaining momentum. .T The front-month rubber contract on Singapore’s SICOM exchange for July delivery STFc1 last traded at 130.1 U.S. cents per kg, up 2.2 cent. ($1 = 6.5811 Chinese yuan) ($1 = 104.5400 yen)

(Reporting by Yuka Obayashi; Editing by Subhranshu Sahu)

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