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Saturday, October 23, 2021

TOCOM rubber rises on Shanghai gains amid easing trade war worries

BEIJING (March 30): Benchmark Tokyo rubber futures rose on Friday, buoyed by gains in Shanghai futures, as trade tensions between China and the United States eased.

Tokyo Commodity Exchange (TOCOM) futures, which set the tone for rubber prices in Southeast Asia, closed higher for a fifth straight session after hitting a 17-month low in early trading on Monday. But prices are still under pressure due to rising stocks.

“TOCOM rise was supported by the rally in Shanghai futures. It was mainly correction and recovery after a big fall,” said Zhang Li, a senior analyst with First Futures.

“It was also related to easing trade tension to some extent. But the rally will be limited since the fundamentals for rubber haven’t changed. Prices remain under pressure.”

The Tokyo Commodity Exchange rubber contract for September delivery finished 2.0 yen (US$0.0188) higher at 184.0 yen per kg.

It climbed 5.4% this week, the biggest weekly jump since July 2017.

The most-active rubber contract on the Shanghai futures exchange for May delivery rose 205 yuan (US$32.68) to finish at 11,290 yuan per tonne.

The front-month rubber contract on Singapore’s SICOM exchange for May delivery last traded at 136.5 US cents per kg, down 0.2 cent.

The yen fell 0.2% against the dollar on Friday.

(US$1 = 106.1700 yen)
(US$1 = 6.2735 Chinese yuan)

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