BEIJING: Benchmark Tokyo rubber futures recovered after falling in early trade on Wednesday, as Shanghai continued to dampen further.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for rubber prices in Southeast Asia, have been under pressure in recent weeks from high inventories and pessimistic view on macro economy.
“Shanghai rubber was affected by the fall of overall commodities. Fundamentals are weak, so is macro economy,” said Tang Xiaonan, analyst, JLC Network Technology Co Ltd.
“Rubber stocks are still high and hard to digest in short term. And it will be supply season in Southeast Asia in November and supplies will be ample,” Tang said.
The Tokyo Commodity Exchange rubber contract for April delivery finished 0.8 yen higher at 163 yen per kg.
TOCOM’s technically specified rubber (TSR) 20 futures contract for April delivery rose 0.5 percent to close at 146 yen per kg.
The most-active rubber contract on the Shanghai futures exchange for January delivery fell 220 yuan to finish at 10.070 yuan per tonne.
The front-month rubber contract on Singapore’s SICOM exchange for November delivery last traded at 123.5 U.S. cents per kg, down 1.1 cent.
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Source: Brecorder
