TOKYO (July 20): Benchmark Tokyo rubber futures hit their highest in nearly two months on Thursday as extended gains in Shanghai futures supported the market.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, have gained 6.5% in the past two sessions.
“TOCOM has been pulled higher by extended gains in Shanghai,” a Tokyo-based broker said. “It looks as though all TOCOM investors were flocking to rubber, considering a lack of liquidity for other products.”
The Tokyo Commodity Exchange rubber contract for December delivery finished 8.5 yen higher at 216.2 yen (US$1.93) per kg after hitting 218 yen earlier, the highest since May 26.
Rubber inventories at TOCOM warehouses stood at 3,354 tonnes as of July 10, up from 2,804 tonnes on June 30, according to the bourse. The stock level has been recovering since hitting its lowest since 2010 earlier this year.
The most-active rubber contract on the Shanghai Futures Exchange for September delivery rose 355 yuan to finish at 14,035 yuan (US$2,074) per tonne.
The front-month rubber contract on Singapore’s SICOM exchange for August delivery last traded at 157.5 US cents per kg, up 0.8 US cent.
(US$1 = 112.1300 yen)
(US$1 = 6.7657 Chinese yuan)
