TOKYO (Feb 22): Tokyo Commodity Exchange (TOCOM) futures, which set the tone for rubber prices in Southeast Asia, ended lower for the second day on Friday, but posted the biggest weekly gain since July 2017.
The benchmark Tokyo Commodity Exchange (TOCOM) rubber contract for July delivery finished 1.5 yen, or 0.8%, lower at 193.6 yen per kg, but ended the week 6.1% higher.
“Investors took profits as TOCOM rose too fast earlier this week and as the benchmark could not break through the key 200 yen mark,” a Tokyo-based dealer said.
The world’s top producers of natural rubber said on Friday they will curb exports by up to 300,000 tonnes in a bid to prop up prices.
“The agreement on export curbs by top rubber producers is positive news, but we need to wait and see if it really will work to help boost prices,” the dealer said.
The most-active rubber contract on the Shanghai futures exchange for May delivery rose 120 yuan, or 1%, to finish at 12,515 yuan per tonne.
Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 0.2% from a week earlier, the exchange said on Friday.
TOCOM’s technically specified rubber (TSR) 20 futures contract for August delivery closed up 1.8% at 167.4 yen per kg.
The front-month rubber contract on Singapore’s SICOM exchange for March delivery recently traded at 143.8 US cents per kg, up 2.1%.