BEIJING (March 28): Benchmark Tokyo rubber futures continued to recover on Wednesday as trade tensions between China and the United States eased further.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for rubber prices in Southeast Asia, edged up following reports that the world’s top two economies are willing to have talks over tariffs and trade imbalances. But prices would remain under pressure in the mid- to long-term due to high stocks.
“TOCOM recovered a little as Sino-US trade conflicts eased,” said Jiong Gu, an analyst at Yutaka Shoji Co.
“But prices will remain weak as stocks are still quite high.”
The Tokyo Commodity Exchange rubber contract for September delivery finished 0.6% higher at 180.2 yen per kg.
The most-active rubber contract on the Shanghai futures exchange for May delivery fell 65 yuan to finish at 11,075 yuan per tonne.
The front-month rubber contract on Singapore’s SICOM exchange for April delivery last traded at 137.8 US cents per kg, down 0.6 cent.
