TOKYO (May 2): Benchmark Tokyo rubber futures hit their highest in more than two weeks on Tuesday, buoyed by firm Shanghai futures and a weaker yen, which makes yen-denominated assets more affordable when purchased in other currencies.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, will be closed from Wednesday to Friday due to a series of national holidays called the “Golden Week”. TOCOM will reopen on Monday.
The dollar hit a one-month high against the yen on Tuesday, lifted by Treasury yields which surged after US Treasury Secretary Steven Mnuchin commented on the possibility of ultra long-term bond issuance.
The Tokyo Commodity Exchange rubber contract for October delivery finished up 6.1 yen at 221.7 yen (US$1.98) per kg. Earlier in the session, it hit 223.9 yen, the highest since April 14.
The most-active rubber contract on the Shanghai futures exchange for September delivery rose 515 yuan to finish at 15,245 yuan (US$2,211) per tonne, after hitting as high as 15,345 yuan, the highest since April 12.
The front-month rubber contract on Singapore’s SICOM exchange for May delivery last traded at 159.40 US cents per kg, up 1.3 US cents.
(US$1 = 112.0900 yen)
(US$1 = 6.8962 Chinese yuan)
