22.6 C
New York
Wednesday, August 17, 2022

TOCOM rubber rebounds on short-covering, Shanghai gains

TOKYO (April 5): Benchmark Tokyo rubber futures soared on Wednesday as traders covered short positions when the contract hit a four-month low in the previous session, while Shanghai futures witnessed a strong start after a two-day holiday.

The Tokyo Commodity Exchange (TOCOM) rubber contract for September delivery finished up 14.0 yen, or 5.9%, at 250.7 yen (US$2.26) per kg, marking the biggest one-day leap since Jan. 30.

“Investors unwound short positions after the TOCOM dropped to 231 yen in the previous day, and as Shanghai resumed trading with a positive tone,” said Jiong Gu, analyst, Yutaka Shoji Co.

The most-active rubber contract on the Shanghai futures exchange for September delivery jumped 540 yuan to finish at 16,970 yuan (US$2,461) per tonne.

Chinese financial markets, includinag commodity futures exchanges, were closed on April 3 and April 4 for the Ching Ming Festival holiday.

The dollar edged down 0.1% to 110.63 yen, well below last Friday’s 10-day peak of 112.19 yen, as concerns over a North Korean missile test worsened sentiment ahead of the summit between the US and Chinese leaders.

“Some investors are anxious about the meeting’s outcome, but I think it will bring no surprises,” Gu added.

The front-month rubber contract on Singapore’s SICOM exchange for May delivery last traded at 184.7 US cents per kg, up 4.8 US cents.

(US$1 = 110.9300 yen)
(US$1 = 6.8957 Chinese yuan)

Related Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

11,289FansLike
12,893FollowersFollow
748FollowersFollow
- Advertisement -

Latest Articles

Popular Articles