TOKYO, May 28 (Reuters) – Tokyo rubber futures rose slightly on Tuesday, snapping a three-day losing streak, as a rise in Japan’s Nikkei share average and a fall in the yen currency encouraged investors.
The dollar rose 1 percent to 101.95 yen, up more than a full yen from a two-week low of 100.66 hit on Friday, as Japanese shares appeared to be stabilising after sharp losses and extreme volatility in the past few sessions.
“The rubber market tracked a rally in the stock market higher. A weaker yen also kept prices from falling,” said a manager at a Tokyo-based commodity broker.
The benchmark rubber contract on the Tokyo Commodity Exchange (TOCOM) for November delivery was newly listed on Tuesday. The contract settled at 268.7 yen ($2.7) per kg after opening at 267.7 yen.
The TOCOM market hit a low of 264.1 yen on Monday, its lowest since May 7, amid concerns about oversupply ahead of a seasonal rise in supply from Thailand in the next few months.
“The rubber market looks firmly capped at 275 to 280 yen, as a fall in open interest shows a lack of fresh buying. Also, an increase in supply usually results in a downtrend in prices in July and August,” the manager said.
The most-active rubber contract on the Shanghai futures exchange for September delivery fell 65 yuan to finish at 19,155 yuan ($3,100) per tonne.
The front-month rubber contract on Singapore’s SICOM exchange for June delivery last traded at 250 U.S. cents per kg, up 4.9 cents.
($1=6.1211 Chinese yuan)
($1=101.0750 Japanese yen)
(Reporting by Risa Maeda; Editing by Clarence Fernandez)
Source: Reuters
