TOKYO (May 23): Benchmark Tokyo rubber futures hit a six-week high on Tuesday on the back of firm oil prices but pared gains by the close of the session as oil erased early gains.
Oil prices erased early gains in the afternoon after US President Donald Trump proposed the sale of half the country’s strategic oil reserves.
Front-month Tokyo Commodity Exchange (TOCOM) futures rose sharply in thin trading, which some industry sources said reflected that most participants with no intention to take or make physical delivery have closed their positions ahead of the expiry on Thursday.
The Tokyo Commodity Exchange rubber contract for October delivery finished 5.4 yen higher at 233.1 yen (US$2.10) per kg after hitting the highest since April 11 earlier at 235.4 yen.
“TOCOM has been reacting very much proactively to oil’s fluctuations, and has been on the focus of attention from many diverse investors,” said a Tokyo-based broker.
The most-active rubber contract on the Shanghai Futures Exchange for September delivery fell 65 yuan to finish at 13,960 yuan (US$2,026) per tonne, after hitting a near three-week high earlier.
China’s natural rubber imports last month gained 22.4% from a year earlier to 259,185 tonnes, official customs data showed on Tuesday.
The front-month rubber contract on Singapore’s SICOM exchange for June delivery last traded at 157 US cents per kg, up 0.8 US cent.
(US$1 = 110.9000 yen)
(US$1 = 6.8914 Chinese yuan)
