TOKYO (Feb 23): Benchmark Tokyo rubber futures rose on Friday, supported by sharp gains in Shanghai futures, brokers said.
TOCOM prices have declined about 9% so far this year amid worries over global rubber demand and a significant strengthening of the yen against the dollar, which has been trading not far from a multi-year low.
The new benchmark Tokyo Commodity Exchange rubber contract for August delivery debuted at 187.1 yen (US$1.75) on Friday morning and finished 1.5 yen higher at 188.6 yen per kg. It earlier hit the highest level for the benchmark contract since Feb. 14.
For the week, the benchmark contract rose 3.9% after five straight weekly declines, the longest losing streak in nearly one year, mainly due to the dollar’s fall to a multi-year low.
“Following the roll-over of contracts, the market sentiment brightened on bullish Shanghai gains,” said a Tokyo-based broker.
The most-active rubber contract on the Shanghai futures exchange for May delivery rose 365 yuan to finish at 12,850 yuan (US$2,026) per tonne.
The front-month rubber contract on Singapore’s SICOM exchange for March delivery last traded at 146 US cents per kg, up 1.6 cents.
(US$1 = 106.8800 yen)
(US$1 = 6.3424 Chinese yuan)
