TOCOM rubber snaps losing streak after hitting five-month low

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TOKYO ( 20): Benchmark futures on Thursday ended higher to snap four consecutive sessions of declines as market participants went bargain-hunting after the contract hit a five-month low.

(TOCOM) futures, which set the tone for rubber prices in Southeast , recovered after falling as much as 2.5% earlier in the session, getting support from a jump in the nearest-month contract ahead of the expiry on Monday.

“The nearest month contract stabilised after recent heavy selling ahead of the expiry, leading to the gains in benchmark TOCOM contract,” said a Tokyo-based dealer. “But the nearest month contract may still have some more room for decline.”

The Tokyo Commodity Exchange for September delivery finished 0.1 yen higher at 203.1 yen (US$1.86) per kg after touching a five-month low of 198 yen early in the day.

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The most-active rubber contract on the Shanghai futures exchange for September delivery rose 470 yuan to finish at 14,800 yuan (US$2,150) per tonne, after hovering close to a seven-month low hit in the previous session.

The front-month rubber contract on Singapore’s SICOM exchange for May delivery last traded at 155.5 US cents per kg, up 3.7 US cents.

(US$1 = 6.8850 Chinese yuan)
(US$1 = 109.0400 yen)

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