TOKYO (Nov 21): Benchmark Tokyo rubber futures rose on Tuesday, snapping a four-session losing streak, as investors looked for bargains after the market hit a five-month low earlier in the session, but gains were capped amid worries over higher stocks and slower economic growth in top buyer China.
The Tokyo Commodity Exchange (TOCOM) rubber contract for April delivery finished 0.5 yen higher at 190.0 yen (US$1.69) per kg, after falling to the lowest since June 23 of 187.8 yen earlier in the session.
“Investors bought back after the benchmark dove below 190 yen mark,” said Satoru Yoshida, a commodity analyst with Rakuten Securities.
“If Chinese economic indicators show signs of an improvement in economy, the rubber markets may bottom out soon,” he said.
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The most-active rubber contract on the Shanghai futures exchange for January delivery rose 15 yuan to finish at 13,335 yuan per tonne.
The front-month rubber contract on Singapore’s SICOM exchange for December delivery last traded at 138.4 US cents per kg, down 0.8 cent.
Rubber inventories at TOCOM-approved warehouses increased to 4,815 tonnes as of Nov. 10, up 749 tonnes from 4,066 tonnes on Oct. 31, according to TOCOM data.
Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 2.2% from the prior Friday, the exchange said on Friday.
(US$1 = 112.5100 yen)
